Oil Prices Dive After Iran Says Strait Is Open -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 10.6% at $88.94 a barrel.

--European benchmark gas is down 8.1% to 38.99 euros a megawatt-hour.

--Copper futures rise 0.5% to $13,302.50 a metric ton.

--Gold futures are up 1.7% to $4,888.90 a troy ounce.

TOP STORY:

Oil Prices Dive After Iran Says Strait Is Open

Oil prices plunged more than 10% and stock futures soared after Iran said the Strait of Hormuz is "completely open" to commercial vessels following a cease-fire in Lebanon.

The comments from Iran's foreign minister on X came as a newly struck cease-fire between Israel and Lebanon appeared to be holding on its first day. The 10-day truce began at midnight local time after weeks of fighting between the Israeli military and the Iran-backed Lebanese militant group Hezbollah.

OTHER STORIES:

With All Eyes on Iran, North Korea Plows Ahead With Nuclear Work

With Iran's uranium enrichment firmly in President Trump's crosshairs, North Korea is quickly advancing its ability to expand its nuclear arsenal, upping activity at its main nuclear site, including work on a suspected new enrichment site.

The war in Iran, plus Washington's stated goal of halting Tehran's nuclear program, have bolstered Kim Jong Un's view that such weapons are critical for the survival of his regime. In addition to the American attacks on Iran, the U.S. has recently targeted nonnuclear states such as Venezuela and Cuba. In contrast, Trump has repeatedly affirmed his good ties with Kim.

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U.K. Power Companies' Shares Slide on Prospect of Government Intervention

Shares in U.K. energy companies dropped after the government said it would intervene in the country's power market in moves that could limit the prices that power generators charge.

SSE and Centrica stock fell by 7.15% and 6.3%, respectively, in afternoon European trade. The pair were the second- and third-sharpest fallers in the Europe-wide Stoxx 600. German group RWE and Danish offshore wind-farm developer Orsted, which also generate power for the U.K. grid, fell by 3.65% and 2.3%, respectively.

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Chocolate Makers Look to Cut Down on Cocoa After Price Volatility

After more than two years of chaos in cocoa markets, chocolatiers are growing hungry for alternatives--with the strain falling on raw producers.

The commodity's price has swung widely, lurching from highs of around $12,000 a metric ton in December 2024 after disease and dry weather dented production, to lows of under $2,900 a metric ton in February this year.

MARKET TALKS:

European Semiconductor Stocks Rise After Iran Says Strait of Hormuz Is Open -- Market Talk

1332 GMT - Shares of European semiconductor companies are on the rise after Iran said the Strait of Hormuz is "completely open" to commercial vessels following a cease-fire in Lebanon. The strait, a key waterway used to transport helium needed to make artificial-intelligence chips, had remained largely closed in recent weeks. Shares of Dutch semiconductor-equipment maker ASML Holding and smaller rival ASM International are up 1.2% and 3.1%, respectively. Shares of BE Semiconductor Industries, the Dutch supplier of semiconductor assembly equipment, are up 2.8%. German chip maker Infineon Technologies is up 4.8%. STMicroelectronics shares are up 4.4%. ([e-mail])

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Gold Gains 1.5% as U.S.-Iran Diplomacy Hopes Grow -- Market Talk

1314 GMT - Gold prices rise 1.5% amid growing optimism over a potential diplomatic resolution to the Iran conflict, as falling oil prices ease concerns about inflation and higher interest rates. "In line with the cease-fire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of cease-fire," Iran's Foreign Minister Abbas Araghchi said in a post on X. New York gold futures rise 2% to $4,903.30 a troy ounce. Silver gains 4.2% to $82.03 an ounce, while platinum is up 1.9% to $2,150.50 an ounce. ([e-mail])

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Oil Tumbles More Than 10% After Iranian Foreign Minister Says Hormuz Passage Is Open -- Market Talk

1313 GMT - Oil prices plunge, extending earlier losses after Iran's foreign minister, Abbas Araghchi, said transit through the Strait of Hormuz is open following the cease-fire between Lebanon and Israel. "The passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire," Araghchi said in a post on X on Friday. Prices eased on signals that the U.S. and Iran could soon hold a second round of talks, fueling hopes of de-escalation, even as supply disruptions and regional risks remain elevated. Brent crude drops 11.4% to $88.04 a barrel, while WTI is down 12% to $83.23 a barrel. European natural gas prices also fell, with the benchmark Dutch TTF contract down 8% to 39.06 euros a megawatt hour. ([e-mail])

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U.S. Natural Gas Futures Steady Amid Mild Weather -- Market Talk

0937 ET - U.S. natural gas futures are modestly lower as the market remains largely disconnected from events in the Middle East where Iran says the Strait of Hormuz is open to all commercial shipping, sending oil spinning lower. "Weather continues to be the bearish driver" for natural gas, Dennis Kissler of BOK Financial says in a note. "While the fundamentals remain extremely negative, price level may be the only bullish aspect attracting buyers near the $2.50 area." Rallies are likely to be sold as bulls await summer heat to drive up demand, he adds. Nymex natural gas is down 0.3% at $2.639/mmBtu. ([e-mail])

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Palm Oil Prices Drop on Crude Oil Weakness -- Market Talk

1008 GMT - Palm oil prices ended lower on weakness in the crude oil market, says David Ng, a trader at Kuala Lumpur-based Iceberg X. The recent weaker export estimates also weighed on prices, he adds. Ng sees support for prices at 4,400 ringgit a ton and resistance at 4,580 ringgit a ton. The Bursa Malaysia Derivatives contract for June delivery fell 44 ringgit to 4,451 ringgit a ton. ([e-mail]; @ivy_jiahuihuang)

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Dollar, Treasury Yields Fall as Iran Declares Strait of Hormuz Now Open -- Market Talk

0918 ET - The dollar weakens as oil prices plunge on reports that Iran is declaring the Strait of Hormuz is now open. President Trump refers to the announcement on social media. The news comes amid growing hopes of a peace deal. Treasury yields also fall as the prospect of cheaper energy eases fears of lasting inflation and boosts expectations of Fed cuts. ICE's DXY index falls 0.6% and the WSJ Dollar Index is down 0.5%. The 10-year Treasury yield is at 4.23%, down from around 4.30% before the news. ([e-mail]; @ptrevisani)

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Oil Tumbles More Than 10% After Iranian Foreign Minister Says Hormuz Passage Is Open -- Market Talk

1313 GMT - Oil prices plunge, extending earlier losses after Iran's foreign minister, Abbas Araghchi, said transit through the Strait of Hormuz is open following the cease-fire between Lebanon and Israel. "The passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire," Araghchi said in a post on X on Friday. Prices eased on signals that the U.S. and Iran could soon hold a second round of talks, fueling hopes of de-escalation, even as supply disruptions and regional risks remain elevated. Brent crude drops 11.4% to $88.04 a barrel, while WTI is down 12% to $83.23 a barrel. European natural gas prices also fell, with the benchmark Dutch TTF contract down 8% to 39.06 euros a megawatt hour. ([e-mail])

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Gold Upside Seen Limited as War Outlook Remains Uncertain -- Market Talk

1121 GMT - Gold prices have rebounded on optimism surrounding U.S.-Iran negotiations, though further gains may remain limited until there is clearer direction on geopolitical developments. "The price of gold has also rebounded amid hopes for an end to the war, as this eases concerns that central banks will have to respond to higher inflation risks with a more restrictive monetary policy, thereby increasing the opportunity cost of holding gold," analysts at Commerzbank say. "However, as long as uncertainty remains high, the potential recovery in the gold market is likely to be exhausted for the time being." In afternoon trading in Europe, New York gold futures are flat at $4,806.30 a troy ounce, on track for a weekly gain. ([e-mail])

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Energy Crisis Likely to Hit Advanced Economies Less Than in 1970s -- Market Talk

0811 GMT - Advanced economies look better prepared to weather the current energy crisis than they were in the 1970s, Joerg Kraemer at Commerzbank says in a note. Head of the International Energy Agency Fatih Birol said recently that the current energy shock is worse than those of 1973, 1979 and 2022 combined. Daily crude production has indeed fallen steeper than previously, Kraemer says. However, modern economies are less energy intensive, strategic reserves are larger and the U.S. is now a net exporter of oil and LNG, he says. In 1974, oil prices rose 250%, compared with a projected 60% in 2026. But risks could mount if disruption persists. "It still seems too early to sound the all-clear," Kraemer says. ([e-mail])

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European Gas Prices on Track for Weekly Loss Despite LNG Supply Worries -- Market Talk

0809 GMT - European natural-gas prices are set for a weekly decline of more than 4% despite persistent concerns over disrupted LNG supplies in the Middle East. "The region competes with Asia for LNG cargoes, as more imports are now required to replenish depleted gas stocks," analysts at ANZ say. "Forecasts of lower temperatures in northwest Europe are also temporarily supporting demand for fuel and slowing the rate of stockpiling, just as the storage season is beginning." In early trading, the benchmark Dutch TTF front-month contract is down 1.6% to 41.74 euros a megawatt hour, as optimism over U.S.-Iran talks and a cease-fire between Israel and Lebanon ease concerns over a prolonged conflict. ([e-mail])

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04-17-26 1002ET