Oil prices drop as Iran offers to reopen Strait of Hormuz if US lifts blockade

Brent crude futures fell to $99.45 per barrel on September 22, dipping below the psychologically important $100 mark for the first time in weeks after Iran signaled willingness to reopen the Strait of Hormuz within seven days. The catch: the US has to lift its naval blockade on Iranian ports first. The proposal, reportedly endorsed by Supreme Leader Mojtaba Khamenei and relayed through intermediaries, arrived while Iranian officials were in New York for the UN General Assembly. What the Strait of Hormuz actually means for oil If you want to understand why a narrow waterway between Iran and Oman moves global markets, consider one number: roughly one-fifth of the world’s oil supply passes through it on any given day under normal conditions. Normal conditions have been in short supply since late February 2026. Escalating military engagements between the US, Iran, and Israel transformed the strait from a busy shipping lane into something closer to a no-go zone. On some of the worst days, vessel traffic dropped to between 13 and 30 ships, a fraction of what would typically be expected for a corridor that handles the majority of regional oil exports. The disruptions sent crude prices soa...