Donald Trump has celebrated the reopening to commercial vessels of the Strait of Hormuz, announced earlier today by Iran. He wrote on Truth Social: “IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!”
Minutes prior to the US leader’s social media post, Iranian Foreign Minister Seyed Abbas Araghchi announced the key waterway would be free to passage to commercial ships following the ceasefire between Lebanon and Israel. He wrote on X: “In line with the ceasefire in Lebanon, the passage for all commercial vessels through 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.”
Shortly after the announcement, the cost of oil per barrel tumbled more than 10%. Brent crude dropped 11.4% to $88.04 a barrel, while WTI was down 12% to $83.23 a barrel shortly before 2.15pm BST.
European natural gas prices also fell, with the benchmark Dutch TTF contract down 8% to 39.06 euros a megawatt hour.
The US President said the naval blockade would remain in place despite the strait being opened, and is not expected to leave until “our transaction with Iran is 100% complete”.
He wrote: “THE STRAIT OF HORMUZ IS COMPLETELY OPEN AND READY FOR BUSINESS AND FULL PASSAGE, 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 reopening of the strait comes after Willie Walsh, the director general of the International Air Transport Association (IATA), said flights in Europe could be cancelled from the end of May as supply lines are disrupted by the war in Iran.
Mr Walsh said cancellations have already become an issue in Asia in his warning on Friday, April 17. He said: “The IEA’s assessment of potential jet fuel shortages is sobering.
“We have also estimated that by the end of May we could start to see some cancellations in Europe for lack of jet fuel. This is already happening in parts of Asia.
“Along with doing everything possible to secure alternative supply lines, it’s important that authorities have well-communicated and well-coordinated plans in place in case rationing becomes necessary, including for slot relief.”
