Iran has announced that the Strait of Hormuz is now “completely open” to commercial shipping, marking a significant de-escalation in one of the world’s most critical energy corridors. The declaration, made by Foreign Minister Abbas Araghchi, comes as part of a broader ceasefire framework linked to ongoing regional negotiations. 

The Strait—through which roughly 20% of global oil supply typically passes—had been severely disrupted in recent weeks amid heightened conflict involving Iran, the United States, and Israel. Shipping traffic was curtailed due to military activity, naval blockades, and the reported deployment of sea mines. 

While Tehran has now reopened the waterway to commercial vessels, the situation remains complex. Ships are still required to follow designated routes coordinated by Iranian authorities, and questions persist over freedom of navigation under international law. 

Global markets reacted immediately to the announcement. Oil prices fell sharply on expectations of restored supply, while equity markets rallied on renewed optimism that a broader peace agreement may be within reach. 

Despite the reopening, tensions have not fully dissipated. A U.S. naval blockade targeting Iranian ports remains in place, and industry leaders continue to warn of residual risks, including unexploded mines and the potential for renewed instability if ceasefire conditions break down. 

For now, however, the reopening of the Strait of Hormuz represents a crucial step toward stabilising global energy flows—and a tentative signal that diplomatic efforts may be gaining traction.