Oil and gas prices fell sharply on Friday after Iran said the Strait of Hormuz was open to commercial shipping, potentially clearing the way for tankers holding millions of barrels of oil and gas to reach the global market.
The apparent end to the seven-week blockade of the key shipping route by Iran, instigated in retaliation for US and Israeli strikes on the Tehran regime, would avert the worst-case scenario of a prolonged strain on fuel supplies deepening the energy shock facing Europe and the rest of the world.
Iran’s foreign minister, Abbas Araghchi, announced that passage for commercial vessels through the Strait of Hormuz would be permitted while there was a ceasefire in Lebanon.
US president Donald Trump described the strait as “completely open and ready for business”, but said a separate US naval blockade on Iranian ships would continue until negotiations with Iran had concluded.
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However, it remains unclear how quickly shipping can resume to prewar conditions, and whether restrictions such as tolls will be imposed by Iran. About a fifth of the world’s supply of oil and gas transits through the narrow chokepoint.
The breakthrough will put a huge diplomatic focus on negotiations to extend the initial ceasefire between the US, Israel and Iran, and the 10-day halt to the fighting between Israel and Hizbullah militants in Lebanon, which came into effect late on Thursday.
France and the UK are leading efforts to gather an international coalition to ensure the safety of shipping in the strait, including through demining and the provision of security escorts to ships.
“The blockage of the strait started by Iran has grave consequences for the whole world,” French president Emmanuel Macron said after a meeting of 49 countries that included most of Europe, China, India, Turkey and Gulf states via video call.
“We oppose all restriction, including any attempt to privatise the Strait of Hormuz or introduce a tollpaying system,” he said.
“All nations interested in freedom of navigation are invited” to take part, UK prime minister Keir Starmer told reporters, saying that a military planning meeting would shortly be held in London to work out logistics.
