Iran on Friday declared the Strait of Hormuz “completely open” for commercial shipping, sending oil prices into freefall and triggering a sharp rally across global financial markets, the most dramatic economic signal yet that a diplomatic breakthrough between Washington and Tehran may be within reach.
Trump scored one of his most significant diplomatic wins on Friday after waging military force, economic strangulation, and relentless negotiation.
Foreign Minister Abbas Araghchi announced the move on X, tying it directly to the Lebanon ceasefire that US President Donald Trump brokered on Thursday between Israel and Hezbollah. “In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire,” Araghchi wrote.
Trump welcomed the announcement on Truth Social with a blunt “THANK YOU!” but immediately made clear that relief would come with conditions.
The US naval blockade, imposed after Iran shut the strait following American and Israeli strikes on its nuclear facilities, would remain in place until a final deal is sealed.
“The naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete,” Trump wrote, adding that he expected the process to conclude “very quickly.”The stakes could not be higher.
Trump had signalled momentum the day before, declaring there was “a very good chance” of a US-Iran deal and describing the ongoing negotiations as “very successful.”
He claimed Iran was prepared to surrender its stockpiles of highly enriched uranium, what he called “nuclear dust”, buried deep underground following US B-2 bomber strikes on three key Iranian nuclear sites last June. “There will be no enrichment of Uranium,” Trump said.
Iran, however, made clear it was not negotiating from a position of surrender. At the UN General Assembly on Friday, Iranian Ambassador Amir-Saeid Iravani insisted that lasting stability in the strait could only be guaranteed through full respect for Iranian sovereignty. “Sustainable stability in the Strait of Hormuz can only be achieved through the cessation of aggression and full respect for Iran’s legitimate rights and interests,” he said.
The markets responded instantly and decisively. Brent crude collapsed over 10% to $89.20 per barrel, while WTI sank 10.5% to $81.50 their lowest levels in five weeks.
On Wall Street, the Dow surged 640 points, the S&P 500 climbed 0.7%, and the Nasdaq gained 1%, extending back-to-back record highs. European indexes also finished higher.
