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Iran declares Strait of Hormuz open as fragile truce lifts hopes of easing Middle East conflict

Oil prices fall as Iran signals reopening of key waterway, but uncertainty remains over security and shipping

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Iran has announced that the Strait of Hormuz is fully open to commercial vessels, raising cautious optimism about a potential de-escalation in the Middle East conflict.

Foreign minister Abbas Araghchi said the strategic shipping route had been “declared completely open,” although Iranian military officials later indicated that vessels would still be required to follow designated routes under supervision.

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The development comes amid a fragile ceasefire and renewed diplomatic efforts to end hostilities involving Iran, Israel and the United States.

US President Donald Trump welcomed the announcement, claiming Iran had agreed not to close the waterway again and suggesting that talks to end the conflict could take place within days.

Despite the optimism, uncertainty remains. The Islamic Revolutionary Guard Corps signalled that its control over the strait remains firmly in place, with passage subject to conditions.

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Shipping activity is expected to remain limited in the short term, as companies assess the security risks following weeks of disruption.

The US naval blockade targeting Iranian ports also remains in force, further complicating the return to normal shipping operations.

The Strait of Hormuz is a critical global trade route, previously carrying around 20 percent of the world’s oil supply. Its closure during the conflict triggered sharp increases in oil prices and heightened fears of a global economic slowdown.

Prices fell following Iran’s announcement, though analysts caution that sustained stability will depend on lasting security guarantees.

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Meanwhile, a separate ceasefire in Lebanon has brought temporary relief after weeks of fighting between Israeli forces and Hezbollah, although sporadic violence continues.

World leaders have urged a durable reopening of the strait, with Emmanuel Macron calling for full and unconditional access, while Keir Starmer stressed the need for a lasting and workable solution.

Diplomatic efforts are ongoing, with Pakistan playing a key mediation role as negotiations continue ahead of the expiry of the current ceasefire.

While the reopening of the strait marks a significant development, analysts warn that the situation remains volatile, with any breakdown in talks likely to disrupt global energy markets once again.

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