After Iran reopened the Strait of Hormuz during a Lebanon ceasefire, oil prices tanked as Donald Trump took to Truth Social to claim victory and demand a deal
Donald Trump has taken a victory lap on social media after Iran made a shock U-turn and reopened the world’s most vital oil artery. The Strait of Hormuz has been declared “completely open” for the “remaining period of ceasefire,” according to a surprise announcement from Iranian Foreign Minister Abbas Araghchi this afternoon.
The move sent global energy markets into a tailspin, with oil prices tanking as the threat of a global supply crunch suddenly eased.
Reacting to the news on Truth Social, the US President couldn’t hide his delight, posting in his signature style: “IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!”
However, Trump made it clear that the US isn’t backing down entirely just yet. In a follow-up post, he warned that the pressure remains on Tehran.
He wrote: “BUT 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.
“THIS PROCESS SHOULD GO VERY QUICKLY IN THAT MOST OF THE POINTS ARE ALREADY NEGOTIATED. THANK YOU FOR YOUR ATTENTION TO THIS MATTER! PRESIDENT DONALD J. TRUMP.”
The impact on the pumps was almost instantaneous. After the announcement, the cost of a barrel of Brent crude, the international benchmark, crashed to below $90, having sat dangerously high at $98 earlier in the day.
The US benchmark, NYMEX light sweet crude, also took a massive hit. The drop offers some breathing room for a global economy that has been rocked by soaring energy costs since the conflict began in February.
Before the fighting broke out, Brent crude was trading at under $70, but it skyrocketed past $100 in early March, eventually peaking at a terrifying $119.
The Strait of Hormuz is a narrow but critical waterway through which 20 per cent of the world’s oil and liquefied natural gas flows.
Iran has used its geographic control of the channel as a massive bargaining chip throughout the war, selectively blocking ships and sending prices through the roof.
The reopening comes just days after the US launched a naval blockade of the area in retaliation for Iran effectively closing the channel for weeks following a joint US-Israeli strike on Iranian targets.
Foreign Minister Araghchi confirmed the reopening was linked to the current truce in Lebanon.
He said: “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 ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.”
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