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Apr 18, 2026

Iran Announces Full Reopening of Strait of Hormuz Amid US‑Iran Standoff, Sparking Oil Price Drop and Global Naval Coordination

AI Summary
Iran’s foreign minister declared the strategic Strait of Hormuz completely open for commercial vessels during a 10‑day Israel‑Lebanon ceasefire, while President Trump confirmed the opening but kept a naval blockade on Iranian ports. The move, affecting roughly 20 % of daily global oil shipments, drove crude prices lower and prompted a Paris‑hosted summit of 30‑40 nations to plan a future multinational freedom‑of‑navigation mission, though shipping companies remain cautious amid mixed US‑Iran signals.

Iran’s foreign minister Abbas Araghchi announced on Friday that the Strait of Hormuz is "completely open" for commercial traffic, aligning the decision with the newly‑instated ceasefire between Israel and Lebanon.

President Donald Trump echoed the statement on social media, insisting the waterway is ready for business but also stressing that the U.S. naval blockade on Iranian ports will remain in full force until a comprehensive agreement is reached.

In Paris, France and the United Kingdom convened a summit of roughly 40 countries to discuss a coordinated effort to restore freedom of navigation in the strait once the broader U.S.–Iran conflict subsides.

The strait channels about 20 % of the world’s daily crude oil flow; its blockage had previously pushed fuel prices upward worldwide. The latest announcement prompted an immediate plunge in oil prices, offering a brief reprieve for markets.

United States: Trump posted on Truth Social that the strait is "completely open and ready for business," yet reiterated that the blockade will stay in effect "until our transaction with Iran is 100 % complete." He later told AFP the deal to end the war on Iran is "close" with "no sticking points" remaining.

Iran: Araghchi shared the opening on X, tying it to the 10‑day ceasefire. However, later state media quoted a senior IRGC official saying only non‑military vessels would be permitted, subject to IRGC Navy approval, highlighting internal ambiguity.

United Kingdom: Prime Minister Keir Starmer co‑hosted the Paris summit with French President Emmanuel Macron, welcoming the reopening but urging that any solution be "lasting and workable." He pledged a "strictly peaceful and defensive" multinational mission to protect navigation when conditions allow.

France: Macron called for an "immediate and unconditional" reopening by all parties and warned against any attempts to "privatise" the strait or impose tolls. His office outlined potential coalition roles, including intelligence, mine‑clearing, military escorts, and communication with coastal states.

Germany: Chancellor Friedrich Merz offered German mine‑clearance and intelligence support, pending parliamentary approval and a UN Security Council mandate. He expressed a desire for U.S. participation, a request Trump publicly dismissed.

Finland: President Alexander Stubb, attending the summit, praised Iran’s announcement but emphasized that durable solutions require diplomatic effort.

United Nations: Secretary‑General António Guterres welcomed the opening as "a step in the right direction," while the International Maritime Organization began verifying compliance with freedom‑of‑navigation standards.

Shipping industry: The Norwegian Shipowners’ Association, representing 130 firms and 1,500 vessels, called the development welcome but said practical details—such as mine presence and Iranian conditions—must be clarified. Germany’s Hapag‑Lloyd and Denmark’s Maersk both indicated they are reassessing risks but remain cautious about immediate transits.

Markets: Analysts noted the announcement’s swift impact on oil markets. "This is the biggest development so far during the ceasefire and gives hope that the war will end soon," said Kathleen Brooks, research director at XTB.