The Tamesis
U.S. and European markets rose after Iran announced on Friday that it would reopen the Strait of Hormuz, sending oil prices down more than 10% to below $90 a barrel.
The announcement by Iranian Foreign Minister Abbas Araghchi on X was welcomed by US President Donald Trump, who posted “Thank you” on Truth Social.
Araghchi said: “Under the Lebanese ceasefire, all commercial ships are allowed to pass [the] Announced that the Strait of Hormuz is fully open for the remainder of the ceasefire, in line with the coordinated lines already announced by the Islamic Republic Ports and Maritime Organization[ublic]. Iran”.
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Trump responded: “Iran just announced that the Strait of Iran is fully open and ready for full passage. Thank you!”
He later added that the U.S. blockade of Iranian ports would continue until a peace deal was reached.
“But the naval blockade against Iran alone will remain at full force until our deal with Iran is 100 percent complete.
“This process should move quickly as most issues have already been negotiated. Thank you for your interest in this matter! President Donald J. Trump.”
Tough questions still need to be resolved
The Dow Jones Industrial Average rose more than 700 points, or 1.5%; the S&P 500 rose 0.8%, surpassing 7,100 points for the first time; the Nasdaq rose 1%, hitting a new intraday high.
Following the good news, oil prices plunged as concerns about supply disruptions eased. As of 14:29 GMT, U.S. West Texas Intermediate crude was at $84 a barrel and Brent crude was at $88 a barrel.
Shares in industries hit hard by the Channel blockade, such as airlines such as Boeing and cruise lines, soared.
Trump said on Thursday that the war with Iran “should be over soon,” and commentators said Iran’s announcement showed meaningful progress had been made in reducing risks to the global economy.
However, analysts also pointed out that a series of thorny issues still need to be resolved, and the ceasefire agreement may need to be extended to achieve this goal.
These include blocking attempts by the Iranian Revolutionary Guards to impose tolls on ships passing through the strait, which would mean reviving the Traffic Separation Scheme (TSS) that has worked well since 1968, as well as preventing continued Israeli attacks on Hezbollah in Lebanon and Iran’s nuclear program.
Trump said the United States will maintain a naval blockade of Iranian ports until the two sides reach a final solution.
EU-UK mandate to protect Channel ships
Meanwhile, European leaders met in Paris and issued a series of statements. British Prime Minister Keith Starmer says France and Britain have agreed to lead a Mission to maintain freedom of navigation in the straits.
Starmer said more than a dozen countries had offered to provide assets for the mission, but he and his counterparts stressed that ship passage in the channel must not be restricted or tolls imposed.
French President Emmanuel Macron welcomed the ceasefire between Iran and Lebanon and noted that the closure of the strait had a “very serious” impact on the global economy.
Italian Prime Minister Giorgio Meloni said Italy would provide some naval forces but said it was “vital” that Iran abandon its “pursuit of nuclear weapons.”
German Chancellor Friedrich Merz said Germany was willing to promote freedom of navigation and help clear mines if the European and British plans were approved by the United Nations and the German parliament. But he said U.S. involvement was “desirable.”
Few ships leave due to mine fears
Shipping lines and maritime authorities are reportedly monitoring developments closely, so while the strait has been declared “open,” the number of ships seeking to leave is very limited.
That’s because shipowners are wary of mines and whether the situation will revert to the long-running TSS system adopted by the United Nations shipping agency, which splits navigation corridors through the waters of Iran and Oman in narrow waterways.
One oil and gas tanker operator, who spoke on condition of anonymity, told British Broadcasting Corporation Iran’s statement “doesn’t change anything” for now.
“We do not feel the need to take unnecessary risks and our company’s approach is that we will not be the first to cross the Channel,” the company said.
Iran currently requires ships to use a specific “coordinated route” past Larak Island, but shipowners and their insurers are still working to better understand the threat posed by mines in parts of the strait, Reuters said.
one Trump’s posts Iran “has cleared or is in the process of clearing all mines.”
He also said: “Israel will not bomb Lebanon anymore. The United States prohibits them from doing so, enough is enough!!!”
Note: The subtitle of this report was revised on April 17, 2026.
See also:
Iran war also chokes trade with Middle Eastern importers
China slams port blockade, calls for intensified US-Iran talks
Vance flies away after talks with Iran fail, Saudi Arabia restores pipeline
Iran ceasefire has little impact on damaged Hormuz ships
Energy crisis triggered by Iran war fuels renewable energy boom, IEA says
Asian fuel importers eye Saudi ports amid uncertainty over Strait of Hormuz
Asia ‘worst hit by energy crisis’ due to Iran war
India’s demand for wood, coal poor as gas prices soar due to Iran war
War with Iran could hit some of Asia’s biggest economies hard
India races to secure supplies as new attacks threaten ‘energy war’
Iran war sends gas prices soaring, Asia ramps up coal power generation
