Oil prices plummeted by around 10% on Friday after Iran declared the Strait of Hormuz “completely open” amid a ceasefire between Israel and Lebanon. 

The West Texas Intermediate, the U.S. benchmark, fell by $9.47, or 10.29%, to $84.95 according to oilprice.com. Brent, the international standard, dropped $8.52, or 8.52%, to $90.87 a barrel. 

U.S. motorists also experienced relief at the pump, with average gasoline prices falling to $4.08 per gallon for regular on Friday, after hitting $4.17 on April 9, the highest level so far this year, AAA data shows. Gas prices are closely tied to the price of crude, which accounts for 51% of the cost of a gallon of gas.

Oil prices jumped after the war in the Middle East began on Feb. 28, at times brushing up against nearly $120 a barrel. The cost spiked due to a slowdown in traffic through the Strait of Hormuz, a key artery for oil shipments through which one-fifth of the world’s oil supply normally flows. 

Prices fell on Friday after Iran’s foreign minister, Seyed Abbas Araghchi, posted on X, “In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.”

President Trump has signaled the U.S. could be close to reaching an agreement with Iran, telling CBS News on Friday that Iran has “agreed to everything,” and will work with the U.S. to remove its enriched uranium. U.S. officials could return to Pakistan to resume negotiations with Iran within days, according to sources familiar with the matter. However, a spokesperson for Iran’s foreign ministry later said in a statement that Iran had no plans to transfer uranium to the U.S., saying it was not “an option.”

Mr. Trump said the U.S. will continue its blockade of Iranian ports and vessels “until we get it done,” referring to an agreement with Iran. According to the U.S. Central Command, 19 vessels have “complied with direction from U.S. forces to turn around and return to Iran” since the blockade started earlier this week.

Stocks rallied on Friday amid hopes for an end to the conflict in the Middle East. The S&P 500 gained 85 points, or 1.2%, to close at 7,126, while the Dow Jones Industrial Average jumped 869 points, or 1.8%, to close at 49,447. The tech-heavy Nasdaq Composite climbed 1.5%.