Iran Reopens Strait of Hormuz; Brent Falls 10%

Iran’s foreign minister, Abbas Araghchi, announced Friday that the Strait of Hormuz is open to commercial shipping for the remaining period of a ceasefire. Araghchi posted on social channels: “in line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.” The statement followed a period Iran described as a technical closure of the waterway.

Markets reacted sharply. Brent futures fell more than 10% to $87.19 during the session, while West Texas Intermediate futures traded near $82.34. Prices had been volatile in recent days amid regional tensions and uncertainty over shipping through the strait.

President Trump posted on social media thanking Iran for reopening the strait and saying CENTCOM’s naval blockade “will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete.” He added that reported mines in the waterway were being removed by Iranian authorities and U.S. forces, and that the U.S. would secure Iran’s nuclear stockpile without transferring money.

The Ports and Maritime Organisation’s reference to a “coordinated route” indicates commercial traffic will follow specified channels while the ceasefire conditions remain in effect. International shipping through the Strait of Hormuz carries a significant share of seaborne crude oil and liquefied natural gas; past closures or disruptions have affected global oil markets.

U.S. military and diplomatic officials have engaged regional partners and Tehran in recent weeks on maritime safety and the security of energy shipments. The CENTCOM restriction described by the White House applies specifically to Iran and is linked to the pace and completion of the negotiations, according to U.S. posts.

Domestic energy data showed retail gasoline averages above $4 per gallon, according to price-tracking data, and the U.S. consumer price index rose 3.3% in March, with energy costs a contributing factor. Chevron executive Andy Walz urged Americans to “drive less” and “try to conserve energy.”

With the strait declared open on the announced route, shipping firms and commodity traders will monitor enforcement of the coordinated passage and any further diplomatic developments that could affect flows through the waterway.