Iranian Foreign Minister Seyed Abbas Araghchi announced on Friday, April 17, that the Strait of Hormuz is completely open for commercial shipping. The strategic waterway, which had been effectively closed since the start of the war, will be fully open to commercial traffic for the remainder of the ceasefire between Israel and Lebanon, as well as the ceasefire with the US.
The announcement led to a sharp decline in energy markets, with oil and gas prices tumbling by nearly 10% in less than two hours. Brent crude and North Sea crude prices plunged as investors anticipated that millions of barrels of oil and fuel stuck in the Persian Gulf would return to the global market. In response to the news, two U.S. stock indexes hit all-time highs.
While at least eight oil tankers raced toward the strait following the announcement, some tanker owners and traders responded warily. Prior to the reopening, traffic had been throttled as the U.S. Navy blocked Iran's coast and Tehran threatened retaliation against ships in the Gulf. Analysts, including John Evans, remain skeptical of an immediate end to the war and noted that it is unclear how quickly the oil industry in the Persian Gulf can return to normal.