Iran said it is opening the Strait of Hormuz as long as the ceasefire in Lebanon is in effect. For now, it has been concluded for ten days. At the same time, however, Donald Trump said that the US naval blockade remains in force.
Iran announced that the Strait of Hormuz will be fully open to all ships as long as the ceasefire between Israel and Lebanon is in effect. "In accordance with the ceasefire in Lebanon, the passage of all commercial ships through the Strait of Hormuz is considered open for the remainder of the ceasefire," Iranian Foreign Minister Abbas Araghchi wrote on social networks. However, the vessels must pass through a special route determined by the Iranian authorities, the representative of the Islamic Republic explained.
US President Donald Trump also posted on his Truth Social profile: "IRAN JUST ANNOUNCED THAT THE IRANIAN STRAIT IS FULLY OPEN AND READY FOR FULL TRANSIT. THANK YOU!" However, the US President added that the naval blockade that the US began on the strait will remain in effect until the truce between Washington and Tehran is finalized. According to him, this should happen “very quickly, as most points have already been agreed”.
Oil prices immediately fell, markets react
Oil prices fell by more than 11% after Tehran announced that the strait was open to shipping. Markets also reacted immediately: Dow futures rose 560 points, or 1.16%. S&P 500 futures rose 0.8%, and Nasdaq 100 futures rose 0.9%.
The Strait of Hormuz is a key shipping route that carries about 20% of the world’s oil and liquefied natural gas. The strait’s geographic location allowed Iran to use it as a leverage during the war, selectively blocking ships from passing through the narrow waterway, causing oil prices to spike.
How it got here
On April 7, Trump agreed to a two-week ceasefire in exchange for Iran opening the strait fully. But Iranian Parliament Speaker Mohammad Bagher Ghalibaf accused the US of violating the agreement by allowing Israel to continue its campaign in Lebanon.
The strait remained almost completely closed during the US-Iran truce as the two sides argued over the terms of the agreement. Only a few commercial ships passed through the waterway daily. The US announced it would begin a naval blockade of the Strait of Hormuz earlier this week after talks between Washington and Tehran in Pakistan last weekend failed.