Oil prices fall 10% after Iran reopens Hormuz to commercial shipping

Oil prices fell by about 10% and stocks rose following statements from Iran’s foreign minister affirming that the Strait of Hormuz is “completely open” for commercial vessels.

President Trump responded on Truth Social, asserting that the U.S.’s naval blockade on Iranian ports would remain in effect.

Cease-fire tensions

The comments coincided with a newly established cease-fire between Israel and Lebanon that began at midnight local time after weeks of conflict.

President Trump indicated potential discussions with Iran, stating, “We’re very close to making a deal,” during a press briefing.

Iran’s deputy foreign minister declared that Iran seeks a permanent resolution to the Middle East conflict instead of another temporary cease-fire.

Strait of Hormuz ship traffic has been at a standstill despite Iran, US and Israel ceasefire

A U.S. proposal for direct talks between Israel and Lebanon aims to include their leaders while excluding Hezbollah, raising questions about any potential peace agreement’s stability.

The leaders of France and the U.K. will convene a virtual meeting with various nations to discuss shipping restoration through the Strait of Hormuz.

President Trump stated he received a call from NATO offering assistance with the situation but advised them to refrain from involvement unless they intended to transport oil.

Commerce Secretary Howard Lutnick announced that the U.S. would consider the situation at the Strait of Hormuz a victory, noting that ships were moving again.

Despite Iran’s claim that the Strait is open, commercial shippers are awaiting clear security assurances before resuming operations.

Shipping concerns

The implications of the ongoing situation continue to provoke uncertainty among oil industry stakeholders.

Iranian Foreign Minister Abbas Araghchi advised that vessels should navigate through a designated route in coordination with the Iranian army, without clarifying toll demands.