A sense of relief is rippling through global energy markets, with particular significance for African economies, after Iran signalled it would reopen one of the world’s most critical oil routes during an uneasy pause in Middle East hostilities.
Abbas Araqchi, Iran’s foreign minister, said in a post on X that passage for all commercial vessels through the Strait of Hormuz is “declared completely open” for the remaining period of the ceasefire, aligning the move with a 10 day halt in fighting between Israel and Lebanon.
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The announcement marks a shift after weeks of disruption, during which Tehran had effectively restricted movement through the narrow waterway, sending oil prices higher and raising fears of a wider economic shock.
Despite a separate two week ceasefire between the United States and Iran, which is due to expire on Tuesday, Iran had until now kept the route under pressure, insisting there would be no easing while Israeli strikes on Lebanon continued.
Reacting to the development, Donald Trump, US president wrote on his Truth Social platform: “IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE. THANK YOU!” He added that while shipping lanes were reopening, pressure on Tehran would remain.
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“BUT 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 said. “THIS PROCESS SHOULD GO VERY QUICKLY IN THAT MOST OF THE POINTS ARE ALREADY NEGOTIATED.”
Markets had already begun to respond even before the formal announcement. Hopes of renewed talks between Washington and Tehran, alongside the temporary ceasefire between Israel and Lebanon, helped push oil prices lower earlier in the trading session, as investors bet that the conflict may be moving towards de escalation.
The Strait of Hormuz is one of the most important energy corridors in the world, carrying roughly a fifth of global oil and liquefied natural gas supplies. In 2025 alone, an estimated 20 million barrels of oil and petroleum products moved through the passage each day, according to the US Energy Information Administration.
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Geography has long given Iran leverage over the route. Bordered by Iran to the north and Oman and the United Arab Emirates to the south, the strait is just about 33 kilometres wide at its narrowest point, making it highly vulnerable to disruption.
Even limited restrictions can send shockwaves through global markets. For African economies, many of which rely heavily on imported fuel, any easing of supply pressure is significant. Lower oil prices can help stabilise currencies, ease inflation, and reduce the cost of transport and power generation.
The oil flowing through the strait does not come from Iran alone but also from major Gulf producers including Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, making the route indispensable to global energy trade.
For now, the reopening offers a measure of calm. But with ceasefires still fragile and key political questions unresolved, the stability of this vital artery remains tied to the uncertain path of diplomacy in the Middle East.
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