The Strait of Hormuz is open for business again. A preliminary agreement between the US and Iran has lifted a months-long blockade of the world’s most important oil chokepoint, sending crude prices tumbling 5% to three-month lows.
The deal, reached around June 14-15, includes a 60-day ceasefire extension and a temporary waiver on US oil sanctions against Iran. Roughly 20% of the world’s seaborne oil passes through the Strait of Hormuz on any given day.
From blockade to barrel flow
Iran had effectively sealed the Strait of Hormuz starting March 4, 2026, a retaliatory move following months of escalating US-Israeli military action against Iran that began in February. Iranian oil exports collapsed to near zero, and insurance premiums spiked.
The temporary sanctions waiver means Iranian crude can re-enter global markets, at least for the next 60 days. The deal also encompasses ongoing discussions about nuclear limitations and broader sanctions relief.
