Global Supply Shocks Ease as Hormuz Reopens, Druzhba Pipeline Set to Restart
Brent crude plunges over 11% after Iran declares key chokepoint open; potential return of Russian oil to Europe adds further downward pressure on global prices.
Global oil prices faced significant downward pressure this weekend following two major developments that could increase worldwide crude supply, according to reports from Rigzone. For Bakken operators, the moves threaten to soften the international price benchmarks that influence the value of their production.
The most immediate shock came from the Middle East. On Friday, April 17, Iranian Foreign Minister Abbas Araghchi announced that the Strait of Hormuz is now "completely open" for commercial vessel traffic, Rigzone reported. The declaration is tied to a ten-day ceasefire between Lebanon and Israel that U.S. President Donald Trump announced on Thursday, April 16.
The reopening of this critical maritime chokepoint, through which about a fifth of the world's oil passes, triggered a sharp sell-off. Brent crude futures plummeted more than 11% to around $88 a barrel following the news, paring its overall gain since the Iran conflict began in late February to just 21%. President Trump confirmed the development in a social media post, stating the strait was "FULLY OPEN AND READY FOR FULL PASSAGE."
Separately, a key European pipeline disruption may be nearing an end. Incoming Hungarian Prime Minister Peter Magyar said on Friday, April 18, that flows of Russian oil to Hungary via the Druzhba pipeline could resume next week, according to Rigzone. Magyar cited a conversation with Zsolt Hernadi, head of Hungarian refiner MOL, who is scheduled to visit Russia to discuss supplies.
The Druzhba pipeline, which transports Russian crude via Ukraine to Central Europe, has been inoperative since it was damaged by a Russian drone strike in January. Its restart would reintroduce another stream of oil to the global market. Ukrainian President Volodymyr Zelenskiy had previously indicated supply could resume by the end of April.
For the Bakken, these geopolitical developments represent a shift from the supply-driven price support seen in recent months. The conflict involving Iran, which began with U.S. and Israeli bombardment on February 28, had contributed to a sustained risk premium in oil markets. The ceasefire between the U.S. and Iran is currently set to expire on April 21, leaving near-term market stability contingent on the progress of peace negotiations.
The potential dual return of oil from the Persian Gulf via tanker and from Russia via pipeline creates a more bearish global supply outlook. North Dakota producers, who compete in an international market, will be monitoring whether the price decline is sustained as these logistical blockades are removed. The sharp drop in Brent highlights the market's sensitivity to changes in flow from these key regions.
Source
According to Rigzone reports from April 17 and April 18, 2026.
