Oil prices plunge as Iran says Strait of Hormuz ‘open’ during ceasefire Iran declared the Strait of Hormuz “completely open” to commercial vessels on Friday, April 18, 2026, citing a ceasefire agreement with Israel and Lebanon. The announcement came from Foreign Minister Abbas Araghchi, who stated that passage for all commercial vessels through the strait is now permitted via designated safe lanes. This declaration follows a period during which Iran had effectively blocked the key oil shipping channel since the U.S. And Israeli attacks on February 28, 2026. A ceasefire between the U.S. And Iran is set to expire on April 22, 2026. Despite Iran’s declaration, U.S. President Donald Trump welcomed the announcement but emphasized that the U.S. Naval blockade of Iranian ports would continue until a peace deal is reached between the two countries. Trump described the development as “a great and brilliant day for the world.” Maritime groups have expressed caution, noting that they are still verifying the safety of vessel transit through the strait, and tracking data indicates minimal ship movement in recent months. Iranian state TV later quoted a senior military official confirming that commercial vessels must use designated routes while the passage of military vessels remains prohibited. The Strait of Hormuz is a critical chokepoint for global oil supplies, with approximately 20% of the world’s oil passing through it. Any disruption to traffic in the strait can significantly impact oil prices and global energy markets. The recent developments have contributed to volatility in oil markets, with prices fluctuating in response to conflicting signals about the strait’s accessibility and the ongoing geopolitical tensions. Analysts note that the situation remains fluid, with the U.S. Maintaining its blockade stance and Iran insisting on the strait’s openness for commercial traffic. The effectiveness of Iran’s declaration depends on whether international shipping companies deem it safe to resume normal operations through the waterway. As of the latest reports, few ships have been able to pass through the strait, underscoring the gap between official declarations and practical maritime operations. The coming days will be crucial as the April 22 ceasefire expiration date approaches, potentially determining whether the strait remains accessible for commercial shipping or faces renewed restrictions. Market observers continue to monitor the situation closely for any signs of escalation or de-escalation in the regional conflict that could affect global energy supplies.
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