Iran's Foreign Minister Abbas Araghchi announced Friday that the Strait of Hormuz is fully open to commercial shipping for the remainder of the ceasefire. The declaration followed U.S. President Donald Trump's social media post confirming the strait "is fully open and ready for full passage."

Araghchi stated the move aligns with a truce in Lebanon, allowing safe passage without restrictions. The announcement triggered an immediate market reaction, with West Texas Intermediate crude oil plunging to $83 per barrel, its lowest level in weeks, amid relief over restored access to a chokepoint for about 20% of global oil trade.

The Strait of Hormuz had been largely closed since February 28, 2026, when Iran blocked passage in retaliation for U.S. and Israeli airstrikes that killed Supreme Leader Ali Khamenei. Iranian forces conducted attacks on over 20 ships, laid naval mines, and imposed multimillion-dollar tolls, reducing daily transits from around 140 to near zero. Brent crude prices had spiked above $126 per barrel in March as Gulf producers like Saudi Arabia and the UAE invoked force majeure on exports.

A fragile ceasefire took effect on April 8, but tensions persisted with Iran enforcing alternative routes and the U.S. imposing a naval blockade on Iranian ports starting April 13. The Pentagon reported turning back 13 to 14 Iran-linked tankers while clearing mines, deterring broader traffic. Joint Chiefs Chairman Gen. Dan Caine clarified the action targeted Iranian ports, not the entire strait.

Trump's administration credited the pressure for prompting Iran's reversal, with stocks surging alongside the oil decline. Shipping data showed limited movement even after initial ceasefires, with only 45 vessels passing since April 8, before Friday's news.

The reopening eases immediate supply fears, though full normalization depends on the ceasefire holding amid ongoing U.S.-Iran peace talks. OPEC+ had ramped up output, and the International Energy Agency released reserves to mitigate shortages. Analysts expect prices to stabilize lower if traffic resumes fully, benefiting consumers but pressuring producers.