The Strait of Hormuz officially reopened to maritime traffic on May 15 following a landmark agreement between the U.S. and China.
Officials announced the deal late on May 14 during a summit in Beijing. The resolution ended a prolonged blockade that had previously pushed Brent crude prices to approximately $108 per barrel.
Brent crude futures plummeted more than 15% in early trading. Prices dropped below $92 per barrel, marking the largest single-day percentage decline in years.
The Vanguard Energy ETF (VDE) fell sharply as investors recalibrated for lower oil prices. The sell-off impacted major producers within the fund, including ExxonMobil and Chevron. This decline reverses the sector's strong performance previously driven by geopolitical tensions throughout the year.