Strait of Hormuz to Reopen After U.S. and Iran Reach Peace Accord, Trump Says

President Donald Trump announced Monday that the United States and Iran have finalized a peace agreement that includes the reopening of the Strait of Hormuz and the immediate removal of the U.S. naval blockade, a move expected to restore one of the world’s most important energy corridors and ease concerns over global oil supplies.

In a post published on Truth Social, Trump said he had authorized the “toll free opening” of the Strait of Hormuz and ordered the immediate removal of the U.S. naval blockade.

“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” Trump wrote.

The announcement triggered an immediate reaction in energy markets. U.S. crude oil prices fell more than 4%, dropping to approximately $81 per barrel, their lowest level in nearly two months, as traders reassessed supply risks following the prospect of renewed oil flows through the Persian Gulf.

The Strait of Hormuz is considered one of the world’s most strategically important maritime chokepoints, serving as the primary export route for crude oil produced by Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, and Iran. Roughly one-fifth of global oil shipments pass through the narrow waterway.

Global energy markets have faced significant volatility since tensions escalated in late February, raising concerns that disruptions in the region could threaten worldwide energy supplies and drive oil prices sharply higher.

According to Trump, the agreement will formally take effect following the signing ceremony scheduled for Friday, after which the Strait of Hormuz will be reopened for commercial navigation and mine-clearing operations.

“The opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World,” Trump said in a separate Truth Social post.

The agreement represents a significant de-escalation in regional tensions and could help stabilize global energy markets after months of uncertainty surrounding one of the world’s most critical oil transit routes.

Market participants will now focus on the implementation of the agreement and the timeline for the full restoration of shipping operations through the Strait of Hormuz, a passage vital to global trade, energy security, and inflation expectations worldwide.