Iran’s announcement that the Strait of Hormuz is open to commercial traffic triggered an immediate decline in oil prices, a development national political reporter Neil W. McCabe said reflects easing geopolitical fears rather than a significant change in global supply.
Following Iran’s declaration that the Strait of Hormuz is “completely open” amid a U.S.-mediated deal pausing Israeli operations in Lebanon, McCabe described the situation as layered and somewhat contradictory during an appearance Friday on The Michael Patrick Leahy Show.
“It’s interesting because the president has said that the quarantine of Iranian related ships will continue,” he explained, highlighting ongoing U.S. measures despite Tehran’s declaration.
According to McCabe, recent developments amount to a tit-for-tat escalation followed by a rhetorical reset.
“All that’s happening is, the Iranians announced a blockade and then we announced we were blockading their blockade, if you will,” he said. “And so the Iranians are now saying, ‘Hey, everything is now free and clear. We’re not gonna block anything.’”
However, he pointed out that Iran’s announcement comes with conditions that limit its practical meaning.
“The foreign minister clarified that you have to take the Iranian route,” McCabe noted, referring to specific maritime lanes through the narrow strait. He explained that ships are effectively being funneled along a path “that sort of hugs the Iranian islands,” as opposed to an alternate route along the coasts of the United Arab Emirates and Oman.
McCabe also provided geographic context to underscore the strategic sensitivity of the region.
“You’ve got that point, that apex, that’s poised like a dagger towards Iran,” he said, describing the narrowest stretch near Dubai where the strait constricts to roughly 20 miles.
Beyond military and navigational implications, McCabe stressed the immediate economic impact of the announcement, particularly on global energy markets.
“Price of oil dropped at least… $10 or $12 a barrel immediately,” he said, noting the sudden shift. “It wasn’t like a slow descent. Basically it was a gap down.”
He argued that this sharp decline reveals the psychological drivers behind recent price spikes.
“What it also shows you is that the rise in oil prices was driven by fear and war concerns. It was not economically driven,” McCabe said.
Looking ahead, McCabe suggested that the broader economic outlook remains stable despite geopolitical tensions.
“What Democrats and opponents of the president and the media have to come to grips with is that the American economy is spinning like a top right now, and Trump is bringing oil online to meet demand,” he said, adding that increased oil supply is helping stabilize markets.
“The demand is still there, but the reason why the prices are not spiking is because there’s so much supply coming on and people know over the horizon there’s gonna be even more supply. Not only coming from the United States but coming from Venezuela. No one is talking about a recession,” McCabe added.
Tune in now to The Michael Patrick Leahy Show – your AMERICA FIRST news talk!
– Watch LIVE here on X
– Watch LIVE on YouTube / Rumble / Roku / AppleTV
– Listen on Spotify
– Listen on WENO AM760 in Nashville
– Read more at @TheTNStar
https://t.co/dM5ELYBaVO— Michael Patrick Leahy (@michaelpleahy) April 17, 2026
– – –
Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
