Oil prices plunged more than 10 per cent on Friday after Iran said the Strait of Hormuz would be “completely open” for the rest of the ceasefire with the United States, and stock markets surged.

Iran’s Foreign Minister Abbas Araghchi said on X that “passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire”.

The strategic waterway, through which one-fifth of the world’s crude oil normally flows, has been disrupted by Iran since the US-Israeli offensive began, sending oil prices to a peak of nearly $120 a barrel and threatening to disrupt the global economy.