Strait of Hormuz is open during Lebanon cease-fire, U.S. and Iran say

Iran and U.S. officials said the Strait of Hormuz is open to commercial shipping during the Lebanon cease-fire, and oil and gas benchmarks fell roughly 9–10% after the announcement.

The Strait of Hormuz is reported open to commercial shipping following a cease-fire agreement in Lebanon, U.S. and Iranian officials said. Iran's foreign minister posted that vessels would be allowed to transit for the "remaining period of cease-fire." The announcement follows weeks of attacks that had sharply reduced tanker traffic and disrupted oil and gas flows. Markets reacted quickly, with benchmark prices falling after the statement. Key details: - Iran said ships would follow a "coordinated route," described by some analysts as a path close to Iran's coast sometimes called the "Tehran tollbooth," and it was unclear whether that implied fees or other conditions. - Experts cautioned that Iran's statement does not automatically equal full freedom of navigation and that major shipping firms remain cautious about transits without clearer security guarantees. - U.S. Central Command said U.S. forces had begun a blockade east of the strait and posted footage of officials directing merchant vessels to return to Iran; it reported 19 ships had complied and said none had evaded the blockade. - Oil benchmarks fell sharply after the announcement, with reports of Brent crude dropping to about $90 a barrel and West Texas Intermediate falling to around $84 a barrel. - Before the conflict, roughly a fifth of the world's oil and liquefied natural gas passed through the strait and more than 130 ships a day transited; traffic had fallen to a trickle during the disruptions. - Articles cited analyses that put the number of ships stranded in the Persian Gulf at about 800–900 during the course of the crisis. Summary: The announcement coincided with a marked drop in oil and gas prices and eased some immediate market pressure. Remaining sources of uncertainty include the U.S. blockade, Iran's routing conditions and insurers' willingness to cover transits, which could slow a return of normal traffic. Undetermined at this time.