The Strait of Hormuz is open for business again. After a naval blockade that choked off one of the world’s most vital energy arteries for over two months, the US signed a memorandum of understanding with Iran that reopened the waterway toll-free starting June 18, 2026.
The immediate market reaction told the story before any diplomat could. WTI crude dropped nearly 5%, while Bitcoin climbed roughly 3% to around $66,000.
From blockade to breakthrough
The blockade began on April 13, 2026, after diplomatic talks in Islamabad fell apart. The US imposed a naval cordon on Iranian ports, effectively bottlenecking a strait that handles around 20% of the world’s oil and liquefied natural gas.
The MoU, signed between June 14 and 17 through a combination of physical and virtual ceremonies, established a 60-day window of toll-free transit through the strait. That clock started ticking on June 18, when over 6 million barrels of oil aboard Saudi supertankers passed through the waterway in the first major transit since the blockade lifted.
