Iran Reopens Strait of Hormuz to Shipping as Lebanon Ceasefire Triggers Oil Price Plunge

Iran reopened the Strait of Hormuz to commercial shipping on Friday, April 17, 2026, linking the move directly to a 10-day ceasefire between Israel and Lebanon that took effect the same day. Iranian Foreign Minister Abbas Araghchi announced the decision on X, stating that passage for all commercial vessels through the strait was declared completely open for the remaining period of the ceasefire on a coordinated route. U.S. President Donald Trump welcomed the announcement but immediately clarified that the American naval blockade of Iranian ports would remain in place until a final deal is reached. Oil prices fell sharply on the news, while stock markets in the United States and Europe rose. New U.S.-Iran negotiations are expected to take place in Islamabad as early as Sunday, April 19, according to Axios.

The Strait of Hormuz has been effectively closed to commercial tanker traffic since the United States and Israel launched military strikes against Iran at the end of February 2026. Before the conflict began, Brent crude oil was trading below $70 per barrel. Prices rose above $100 and reached a peak of over $119 per barrel in March 2026. The closure disrupted global oil and gas supplies and also interrupted shipments of chemical fertilizers, with one-third of the world's main fertilizer supplies passing through the strait, driving up prices and raising concerns about food costs.

„In line with the ceasefire in Lebanon, the passage for all commercial ships through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire on the coordinated route as already announced by the Ports and Maritime Organization of the Islamic Republic of Iran.” — Abbas Araghchi via ANSA

Trump responded within minutes on his Truth Social platform, initially thanking Iran before issuing a sharper follow-up statement.

„The Naval Blockade will remain in full force and effect as it pertains to Iran and until such time as our negotiations are 100% completed. This process should go quite quickly seeing as most points have already been negotiated.” — Donald Trump via Publico

An Iranian military official stated on state television that commercial ships may cross the strait on a determined route and with authorization from the Revolutionary Guard Navy, but that warships remain prohibited from transit.

Oil drops sharply as markets cheer the opening Oil prices fell sharply following Araghchi's announcement, with both benchmarks sliding well below their recent conflict-era highs. Brent crude dropped to $88 per barrel from $96, while WTI fell to $83 per barrel from $93. One report noted WTI losses of approximately 10% on the day. Global equity markets rose in parallel, with the S&P 500 gaining 0.8% and both the Nasdaq and Dow Jones Industrial Average climbing by over 1%. European markets posted stronger gains, with the CAC index in Paris and the DAX in Frankfurt each rising by more than 2%, while London's FTSE 100 added approximately 0.5%.

Oil prices: before and during Hormuz closure vs. reopening announcement: Brent crude (before: Below $70 (pre-conflict), after: $88 (April 17, 2026)); WTI crude (before: $93 (morning of April 17), after: $83 (after Hormuz announcement)); Brent peak (before: Over $119 (March 2026), after: $88 (April 17, 2026))

The closure of the strait since late February had drastically reduced the volume of oil and gas available on global markets, pushing up gasoline and diesel prices for consumers and raising concerns about jet fuel supplies that threatened airline operations. The sudden drop in oil prices on Friday represented the lowest level reached since the conflict began, according to reports cited by oko.press.

Islamabad talks expected Sunday as uranium deal floated The next round of U.S.-Iran negotiations is expected to take place in Islamabad on Sunday, April 19, according to reporting by Axios. The U.S. naval blockade of Iranian ports, which began on Monday, April 13, remains in effect and applies exclusively to Iran, Trump stated. Axios also reported that the United States is evaluating a deal that would involve $20 billion in exchange for Iranian uranium, though no further details on the proposal were confirmed in available sources. The 10-day ceasefire between Israel and Lebanon was brokered by the United States following telephone conversations between Trump, Israeli Prime Minister Benjamin Netanyahu, and Lebanese President Joseph Aoun. Notably, the Shiite group Hezbollah was not included in those discussions, and an Iranian military spokesperson from the Pasdaran stated that while there was silence on the field, forces remained ready to act. Trump also used the occasion to criticize NATO allies, saying he had received a call from the alliance offering assistance after the Hormuz situation was resolved and told them to stay away.

Key events: Hormuz closure and reopening: — ; — ; — ; — ; —