President Trump announced on Monday that ships are beginning to move through the Strait of Hormuz, with a full reopening expected by Friday, June 19. The declaration follows a ceasefire agreement with Iran signed over the weekend that ends the US naval blockade and restores toll-free passage through the waterway.
Here’s the thing about the Strait of Hormuz: roughly 20-25% of the world’s oil trade passes through it. It has been largely closed since late February 2026.
What happened and why it matters
The agreement, finalized around June 15, includes a 60-day window for renewed nuclear negotiations with Iran. During that period, ships can transit the strait without tolls, and the US has begun a partial removal of its naval blockade of Iranian ports.
Trump’s language was characteristically confident: ships “are starting to move,” and full operations would resume within days. Oil markets responded swiftly, with prices dropping to their lowest levels since early March 2026, when the crisis was still escalating.
