A top Iranian official says the Strait of Hormuz will be “completely open” for the duration of the ceasefire between Israel and Lebanon, a major development that enthused markets.
Iranian Foreign Minister Abbas Araghchi announced the reopening Friday on social media.
“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,” he wrote.
Tehran imposed limits on oil traffic through the Strait of Hormuz after the U.S. and Israel launched coordinated strikes against Iran on Feb. 28, sparking a multi-week war.
The clampdown on oil traffic caused supply shocks worldwide and became a major sticking point in U.S.–Iran peace negotiations.
Dow Futures rallied by over 500 points early Friday after Mr. Araghchi’s post.
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The price of Brent crude oil, an international benchmark, tumbled by 10% to below $90 per barrel.
President Trump hailed the news, writing on Truth Social in all caps: “Iran has just announced the Strait of Iran is fully open and ready for full passage.”
However, Mr. Trump said the U.S. blockade of maritime traffic to and from Iranian ports would remain in effect “until such time as our transaction with Iran is 100% complete,” meaning a final peace deal.
“This process should go very quickly in that most of the points are already negotiated,” he wrote on Truth Social.
Progress arrived after Israel agreed Thursday to a 10-day ceasefire in its war on Iran-backed Hezbollah fighters in Lebanon.
Iran had insisted on a pause in the Lebanese fighting, so the ceasefire seemed to accelerate work toward a broader peace between the U.S. and Iran.
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Mr. Trump said peace talks with Iran could restart by the weekend. He also said he might go to Islamabad if they want him on hand to sign a peace deal.
