Oil falls by over 11% after Iran FM declares Strait of Hormuz open

Oil prices plunged by over 10% on Friday, extending previous losses, after Iran's foreign minister said that the passage for all commercial vessels through the Strait of Hormuz was open for the remaining ceasefire period, in line with that in Lebanon.

Brent crude futures dropped by $11.12, or 11.2%, to $88.27 a barrel at 1311 GMT. U.S. West Texas Intermediate crude futures fell $11.40, or 12%, to $83.29 a barrel.

"Comments from Iran's foreign minister indicate a de-escalation as long as the ceasefire is in place, now we need to see also if the number of tankers crossing the Strait increases substantially," UBS analyst Giovanni Staunovo said.

Prices were already down earlier in the session as possible further talks between the U.S. and Iran at the weekend and a 10-day ceasefire between Lebanon and Israel raised investors' hopes the war in the Middle East could be nearing an end.

Addressing a key sticking point in talks to end the Iran war, Trump said Tehran had offered not to possess nuclear weapons for more than 20 years.

"We're going to see what happens. But I think we're very close to making a deal with Iran," Trump told reporters outside the White House on Thursday.

(Reporting by Robert Harvey in London, Helen Clark in Perth; Editing by Sonali Paul, Joe Bavier, Alexander Smith and Louise Heavens)