Strait of Hormuz Reopens as Trump Orders End to Naval Blockade

Updated: 7:58 AM PKT — June 19, 2026

Oil prices fell on Friday as the interim peace deal between the United States and Iran allowed tanker traffic to resume through the Strait of Hormuz, easing supply concerns. Brent crude futures dropped to $78.31 a barrel, while US West Texas Intermediate crude slipped to $76.14, with both benchmarks hitting their lowest levels since early March. Several tankers, including three Saudi-flagged vessels carrying 6 million barrels of crude, have already sailed through the strait. Kuwait Petroleum Corp announced it has lifted all force majeure notices, and Iraq’s Oil Minister stated its fields are ready to gradually resume production.

Analysts estimate the deal could release more than 85 million barrels of oil previously stranded in the Middle East Gulf, with the eventual lifting of US sanctions on Iranian oil set to add further supply. However, some market caution remains, with traders waiting for traffic to fully normalize. Lingering geopolitical uncertainty also persists, as Israel’s continued war against Hezbollah in Lebanon raises questions about the durability of the regional peace agreement.

Updated: 12:20 AM PKT — June 19, 2026

The United States and Iran have formally signed a memorandum of understanding to end their conflict, with Pakistan’s Prime Minister Shehbaz Sharif also signing as a mediator. The agreement, signed by US President Donald Trump and Iranian President Masoud Pezeshkian, facilitates the immediate reopening of the Strait of Hormuz and has led to a drop in oil prices. Following the signing, PM Sharif canceled a planned trip to Switzerland, though technical talks are still expected to be held there, with US Vice President JD Vance planning to attend.

The deal, which initiates a 60-day negotiation period for a final accord, has drawn both praise and sharp criticism. VP Vance defended the agreement against Israeli opposition and US hardliners, stating Iran must comply with terms to receive benefits, including sanctions relief and access to a $300 billion reconstruction fund. President Trump dismissed critics as ‘fools’. However, some US Republicans have labeled it a ‘foreign policy blunder,’ noting that Iran’s nuclear program is not being dismantled and its ballistic missile program remains off the table for negotiations.