Iran’s Foreign Minister Abbas Araghchi announced that “with the start of the ceasefire in Lebanon, the passage of all commercial vessels through the Strait of Hormuz is fully open for the remainder of the ceasefire.” With this statement, the critical waterway has reopened to the world after about a month and a half. Oil prices fell sharply.
Araghchi announced the decision in a post on his X account.
Stating that the Strait of Hormuz has been reopened, Araghchi said:
“In parallel with the ceasefire in Lebanon, and via the coordinated route already announced by the Ports and Maritime Organization of the Islamic Republic of Iran, the passage of all commercial vessels through the Strait of Hormuz has been declared fully open for the remaining duration of the ceasefire.”
The ceasefire between Israel and Lebanon is set to end on April 27, while the ceasefire between the United States, Israel, and Iran will expire on April 26.
Brent crude falls below $90
Following the announcement that the Strait of Hormuz would be fully open to all commercial vessels, Brent crude dropped 8.7 percent, falling below $90 per barrel.
Gold and silver rise
Spot gold rose to as high as $4,846 per ounce, gaining around 1 percent. Gram gold climbed to 6,986 Turkish lira, increasing by more than 1 percent.
Silver surged nearly 4 percent to 118 lira, while spot silver reached $81.4 per ounce.
Closure of the Strait of Hormuz
On February 28, the United States and Israel launched attacks against Iran. In retaliation, Iran effectively shut down the Strait of Hormuz.
The Strait of Hormuz is a critical chokepoint through which roughly 20 percent of global oil trade passes. Its closure drove up global energy prices and triggered a supply shock in oil markets.
Ceasefire process and the status of Hormuz
- April 7: A two-week temporary ceasefire between the U.S. and Iran was declared under Pakistan’s mediation. Iran agreed to conditionally reopen the Strait of Hormuz to commercial vessels via a coordinated route under the supervision of its armed forces.
- April 13: The United States announced a naval blockade targeting Iranian ports. On April 16, only a few ships passed through, with some Iranian tankers reportedly breaching the blockade. CENTCOM claimed the blockade was effective, while Iranian vessels continued to pass intermittently.