Strait of Hormuz reopens during ceasefire, markets rally

The Strait of Hormuz will be “fully open” to commercial shipping during the current ceasefire in the Middle East, according to Iran’s Foreign minister, Abbas Araghchi.

Writing on X, he said all trade vessels can pass through the vital waterway along a pre-agreed route for the remainder of the truce. The move follows a 10-day ceasefire between Israel and Lebanon, which began late on Thursday, easing wider regional tensions.

The Strait of Hormuz is one of the world’s most important energy routes, carrying large volumes of oil and liquefied natural gas. Its reopening has quickly calmed fears of supply disruptions.

US president Donald Trump welcomed the announcement, confirming the passage is open. However, he said the US blockade of Iranian ports would remain in place until a broader agreement with Iran is reached.

Financial markets reacted strongly. Global stock markets rose, while oil prices dropped sharply as concerns over an energy shock eased. Investors appeared reassured that shipping through the strait would continue without interruption.

Meanwhile, European leaders are discussing how to secure the waterway in the longer term. Talks led by Emmanuel Macron and Keir Starmer in Paris brought together representatives from around 50 countries.

They aim to develop an international plan to protect shipping and guarantee free passage once the conflict ends. Further discussions are expected to take place in London next week.

^{© AFP}