Hormuz Strait is ‘completely open’ Now

One thing I like about the Bangkok Post is you are getting an accurate replay of what is actually happening and said. There is no enhancement or interpretation of the issue or what is happening.

Now, if we can only get the Trump administration to admit the attack on Iran was a mistake. It is estimated the cost of this debacle by the Trump administration pushed the price of oil to an average of $100 (£74) a barrel in March leading to windfall war profits for the month of $23bn for the oil companies. 

“Iran declares Hormuz ‘completely open,’” Bangkok Post

Iran declared the Strait of Hormuz “completely open” to commercial shipping on Friday, as a ceasefire came into effect in Lebanon, raising hopes that two of the main obstacles to a US-Iran peace deal may have been cleared.

All ​commercial ships including ​US ‌vessels can sail through the Strait of ​Hormuz although ⁠their plans need to ‌be coordinated with Iran’s Revolutionary Guards, ⁠a senior Iranian official told Reuters, adding that unfreezing ​Iranian funds had been ​part ‌of the agreement regarding Hormuz.

The ​official ⁠said transits would ⁠be restricted to lanes that Iran deemed safe, ⁠adding that ​military vessels were still prohibited from ‌crossing ⁠the strait.

“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,” Foreign Minister Abbas Araghchi said.

President Donald Trump immediately welcomed Iran’s announcement, saying “THANK YOU!” in a post on his social media platform, but also went on to warn that the US blockade of Iran’s ports would continue.

“Iran has agreed to never close the Strait of Hormuz again. It will no longer be used as a weapon against the World,” Trump said on his Truth Social network.

Trump also said that Iran was removing mines from the Strait of Hormuz with US assistance.

“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,” he added, referring to ongoing diplomatic efforts to secure a negotiated peace.

Oil prices plunge

Oil prices plunged more than 10% on Friday in response to the news, with both the benchmark international contract Brent and its US equivalent West Texas Intermediate falling below $90 per barrel.

Wall Street’s main stock indices jumped at the opening bell, with both the S&P 500 and the Nasdaq Composite building on record highs struck the previous evening.

Both the US and Iran have indicated that a new round of peace negotiations might begin as soon as this weekend, but there has been no official confirmation.

Separately, the Israeli military said it was lifting wartime restrictions, allowing civilian movement and economic activity to return to normal, although Prime Minister Benjamin Netanyahu warned that the campaign against Iran-backed Hezbollah was not over.

“We have not yet finished the job. There are things we plan to do to address the remaining rocket threat and the drone threat,” Netanyahu said.

Trump, however, rebuffed this idea, promising that the United States would work with Lebanon to “deal with” Hezbollah.

“Israel will not be bombing Lebanon any longer. They are PROHIBITED from doing so by the USA. Enough is enough!!!” Trump said, in another social media post.

Deal ‘very close’?

The ceasefire and the reopening of the strait represent a key step in Washington’s efforts to reach a deal to end its war with Iran, after Tehran insisted that halting the Lebanon fighting must be part of any agreement.

Pakistan has been leading a diplomatic push to restart face-to-face talks between Tehran and Washington, and Trump said they were “very close” to striking an agreement.

The fighting broke out in Lebanon on March 2 when Hezbollah fired rockets at Israel a few days after the start of the Middle East war in retribution for the killing of Iran’s supreme leader Ali Khamenei.