Iran's Foreign Minister Abbas Araghchi announced today that the Strait of Hormuz is “completely open” for commercial vessels for the remaining period of the ceasefire. The move marks a major step toward ending a war with the United States and Israel that has sent energy prices surging and disrupted the global economy for nearly seven weeks.
Ships will have to use a coordinated route, Araghchi said, adding that the move was made in line with the Israel-Lebanon ceasefire that took effect Thursday at 5 P.M. local time. Oil prices plunged on the news, with WTI crude closing down 11.45% at $83.85 per barrel — the second-largest single-day drop since the war began.
Approximately 21 million barrels of oil per day normally transit the Strait of Hormuz — about 21% of global consumption. A backlog of roughly 230 loaded tankers that had been waiting inside the Gulf is now beginning to clear, though industry analysts warn that full normalization may take weeks.
President Trump hailed the news and thanked Tehran but said the U.S. naval blockade of Iranian ports “will remain in full force” until the two sides reach a peace deal. A second round of U.S.-Iran talks is expected this weekend. The U.S.-Iran ceasefire expires April 22.