(April 17): Iran said it would open the Strait of Hormuz for the duration of a 10-day ceasefire between Israel and Hezbollah in Lebanon, increasing the prospect of an agreement to end the wider war in the Middle East.
The critical waterway for global energy supplies, which has been effectively shut since the US and Israel started bombing Iran at the end of February, is now “completely open” for commercial shipping, Iran’s Foreign Minister Abbas Araghchi posted on X on Friday. The move is “in line” with the Lebanon truce, he said.
Oil prices plunged on the announcement, with global benchmark Brent crude declining more than 11% to US$88 a barrel, as expectations rose of a boost to shipping that would help ease a global supply crunch.
Hormuz is “open and ready for business”, US President Donald Trump said on Truth Social on Friday, after the Iranian announcement, adding that Iran and the US are in the process of removing mines in the strait. A US naval blockade — designed to stop Iran from shipping oil to global markets — would remain in place until a broader agreement is reached, he said.
“Most of the points are already negotiated,” he added.
Iran will close Hormuz again if the US naval blockade remains in place as it will be considered a violation of a two-week ceasefire agreed on April 7, Iran’s semi-official Fars news agency reported. The passage of vessels must be coordinated with the Iranian forces, Tasnim added.
See also: Trump says Iran to suspend nuclear program, won’t get funds
Araghchi’s comments came after Israel and Iran-backed Hezbollah looked on Friday to be observing a US-announced truce after seven weeks of fighting. Their ongoing conflict had been complicating efforts by Washington and Tehran to agree to an extension to their own ceasefire beyond its official expiry date next week.
Trump went on to release a series of social-media posts, in which he appeared to be confident a final agreement to end the war has been finalised. He thanked Pakistan, which has been mediating between the US and Iran, as well as Saudi Arabia, Qatar and the United Arab Emirates, which Iran targeted with missiles during the conflict.
Iran has yet to comment on any deal beyond the Hormuz opening, nor on claims made by Trump on Thursday that Tehran had offered concessions — including over the key issue of its nuclear program.
See also: Trump says Iran deal getting closer as Lebanon truce starts
Trump has repeatedly said the Islamic Republic must not be allowed to have nuclear weapons, and told the US-based NewsNation website on Friday that Iran has also agreed to stop enriching uranium.
Iran has said it isn’t pursuing a weapons program, and has insisted on its right to the peaceful use of nuclear energy. Foreign Ministry Spokesman Esmail Baghaei said this week the country’s level and type of enrichment are “negotiable.”
One proposal under discussion is for the US to release US$20 billion in frozen Iranian funds in return for Tehran giving up its stockpile of enriched uranium, Axios reported, citing two US officials and two additional sources briefed on the talks that it didn’t identify.
Trump pushed back against the report, saying on social media that while the US is pursuing Iran’s uranium, “no money will exchange hands in any way, shape, or form.”
Trump’s predictions of a quick end to the war have been a regular fixture of the conflict, which has killed thousands and triggered a surge in energy prices, but Friday’s more substantial developments are reinforcing optimism in global markets.
The S&P 500 rose 0.8% on the Hormuz announcement after notching back-to-back record highs, while the dollar lost ground against all major peers.
Israel and Lebanon’s ceasefire was agreed after the issue frustrated an initial round of US-Iran talks in Pakistan last weekend. While the deal announcement didn’t mention Hezbollah, the militant group stopped launching rockets into Israel overnight and supporters celebrated by firing guns in Beirut.
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Israeli Prime Minister Benjamin Netanyahu confirmed the agreement, calling it a step toward a broader peace, and Trump said US officials would work with both sides to secure a lasting deal.
“Israel will not be bombing Lebanon any longer,” Trump said. “They are prohibited from doing so.”
Still, Israel has “not yet finished the job” against Hezbollah, Netanyahu’s office said on Friday. The goal is to dismantle the group and “this will not be achieved tomorrow,” it added.
Israel had been fighting Hezbollah in southern Lebanon since just after the start of the US-Israeli bombing of Iran on Feb 28. The Israeli military has occupied large parts of southern Lebanon as part of the campaign, which Lebanese authorities say has killed more 2,000 people and displaced a million more.
Trump said he spoke with his Lebanese counterpart, Joseph Aoun, and Netanyahu before declaring the ceasefire. In a subsequent social media post, Trump said he would invite both leaders to the White House for talks.
Any US-Iran ceasefire would have to include a longer term solution for Hormuz, through which about a fifth of the world’s oil and liquefied natural gas flowed before the conflict. The block on the waterway has elevated prices and stoked fears of a global slowdown and inflation crisis.
The US imposed its own blockade on Monday, while Iran has repeatedly said it wants to maintain control of the strait in the longer term and is working on legislation to charge tolls.
Pakistan’s army chief, Asim Munir, traveled to Iran this week as part of his country’s role as mediator between Washington and Tehran. There hasn’t been an announcement regarding a second round of direct talks.
Trump said on Thursday that he “might” travel to Pakistan if a deal with Iran is clinched.
“They have agreed to almost everything,” Trump said. “They got to get to the table with a pen.”
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