TLDR
- Iran’s foreign minister declared the Strait of Hormuz fully open to commercial vessels for the duration of the ceasefire
- Brent crude fell over 10% to below $90 a barrel; WTI dropped to below $82
- A 10-day Israel-Lebanon ceasefire began Thursday at 5 p.m. ET
- The U.S. is reportedly considering releasing $20 billion in frozen Iranian funds for Iran’s enriched uranium
- Trump confirmed the U.S. naval blockade of Iran remains in place despite the strait reopening
Oil prices fell sharply on Friday after Iran’s foreign minister Abbas Araghchi announced the Strait of Hormuz was fully open to commercial shipping for the remaining period of a ceasefire between Israel and Lebanon.
Brent crude dropped more than 10% to around $88.65 a barrel. West Texas Intermediate fell by a similar margin to below $82. Both benchmarks had been trading above $100 at the start of the week.
Araghchi posted the announcement on X, saying passage was “completely open for all commercial vessels” along a coordinated route already set by Iranian authorities.
President Trump followed with his own post on Truth Social, confirming the strait was open. But he added that the U.S. naval blockade of Iran “will remain in full force and effect” until a deal with Tehran is finalized.
"IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!" – President Donald J. Trump 🇺🇸 pic.twitter.com/xDQpCj8APe
— The White House (@WhiteHouse) April 17, 2026
That created some uncertainty for shipping companies. Iran’s state TV reported that vessels crossing the strait must coordinate with Iran’s Revolutionary Guard Corps. It was also unclear which exact route ships would be required to use.
What the Ceasefire Means for Negotiations
On Thursday, Trump announced that Israel and Lebanon had agreed to a 10-day ceasefire starting at 5 p.m. ET. Trump said he had spoken with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu to reach the agreement.
Israel had continued military operations in Lebanon against Hezbollah even during U.S.-Iran ceasefire talks, which had been a sticking point in broader negotiations between Washington and Tehran.
The Lebanon ceasefire removed one obstacle, but a full deal between the U.S. and Iran is still not settled.
A Possible Deal Takes Shape
Axios reported Friday that the U.S. and Iran are discussing a three-page plan to end the conflict. One element involves the U.S. releasing $20 billion in frozen Iranian funds in exchange for Iran handing over its enriched uranium stockpile.
Trump told reporters the two sides were “very close” to a deal. He said Iran had agreed not to possess a nuclear weapon for more than 20 years and had made concessions on its nuclear enrichment program.
Iran has called for the removal of international sanctions as part of any agreement.
Oil prices had already been falling from a high of around $120 a barrel, hit after the war began with U.S. and Israeli airstrikes on Iran in late February. Before the conflict, crude was trading around $70 a barrel.
The Strait of Hormuz handles roughly a fifth of the world’s oil supply. Analysts at ING estimated that around 13 million barrels per day were disrupted by its effective closure.
France and Britain were set to chair a meeting Friday of around 40 countries to discuss efforts to reopen the strait. No date has been set for a second round of U.S.-Iran talks, Pakistan’s foreign minister confirmed Thursday. European and Gulf leaders privately believe a deal could take up to six months to reach.
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