Oil prices dropped sharply on April 17 after Iran reopened the Strait of Hormuz, with Brent crude falling 9%—its largest single-day decline since April 8. The reopening signals reduced geopolitical tension following months of U.S.-Iran conflict, which had driven oil to record highs as traders priced in sustained supply disruptions. This price reversal may shift Federal Reserve rate-cut expectations, as lower energy costs could ease inflation pressures the Fed has been monitoring.