The announcement came without warning. On Friday afternoon, Iran’s Foreign Minister Abbas Araghchi made a declaration that immediately moved global oil markets by double digits: the Strait of Hormuz is completely open for commercial shipping.
Within minutes, Brent crude fell 9 percent. WTI crude plunged more than 11 percent. Stock markets hit all-time record highs. The most consequential energy chokepoint in the world had, at least officially, reopened.
What Iran Said
Iran’s Foreign Minister said: “In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire.”
The linkage is deliberate and significant: Iran tied the opening of Hormuz directly to the 10-day Lebanon ceasefire that took effect Thursday. The message is explicit — Hormuz stays open as long as the Lebanon truce holds. If Israel resumes strikes on Lebanon, or if Hezbollah is attacked in violation of the ceasefire terms, the implication is that Iran could close it again.
What the Markets Did
US crude oil plunged 11.4% to $83.85 per barrel — its lowest level since March 10. International Brent crude slid 9% to $90.38 per barrel. Friday was the second largest single-day drop since the war began for both US and Brent crude. Heating oil futures, which are a proxy for jet fuel, dropped 10%. Wholesale RBOB gas futures fell 5%.
The S&P 500 closed above 7,100 points for the first time ever Friday — its best week since May. The Dow soared 869 points, recouping all of its losses since the war began. The S&P 500 has gained more than 10% since late March and is now up nearly 2% since the war began on February 28.
The Catch: Caution on All Sides
Despite the declaration and the market reaction, actual ship traffic through the strait remained limited on Friday.
Only a handful of ships crossed the Strait of Hormuz on Friday, despite Araghchi declaring it “completely open.” Ship tracking data shows that no oil tankers exited the Persian Gulf and only five cargo ships and one tanker transited to the Gulf of Oman.
Shipping companies responded with caution. Maersk said in a statement: “Since the outbreak of the conflict, we have followed the guidance of our security partners in the region, and the recommendation so far has been to avoid transiting the Strait of Hormuz.”
The US blockade of Iranian ports also technically remains in place. After Araghchi’s announcement, Trump took to Truth Social announcing the United States would keep its own blockade on the strait — souring the mood in Tehran.
What It Means
The Hormuz opening — even a conditional, partial one — removes the single most acute physical constraint on global oil supply. If tankers begin transiting in meaningful numbers over the weekend, next week’s oil prices could fall further. If the Lebanon ceasefire holds and Iran keeps the strait open through April 22, the pressure on both sides to reach a nuclear deal in Islamabad’s second round increases dramatically.
The EU’s top diplomat, Kaja Kallas, said: “Under international law, transit through waterways like the Strait of Hormuz must remain open and free of charge. Any pay-for-passage scheme will set a dangerous precedent for global maritime routes.” UK Prime Minister Starmer added: “The strait should be reopened immediately with no tolls and no restrictions.”
