Trump authorizes reopening Strait of Hormuz deal

President Donald Trump says the United States and Iran have reached a deal to reopen the Strait of Hormuz, authorizing the “toll free opening” and the immediate removal of the U.S. naval blockade. Iran has not yet confirmed the agreement, while Pakistan’s Prim

For markets that have spent months pricing in risk, the announcement landed like a sudden shift in weather: late Sunday, President Donald Trump said a deal was complete to reopen the Strait of Hormuz and lift the United States naval blockade.

Trump wrote on TruthSocial, “The Deal with the Islamic Republic of Iran is now complete,” adding, “I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade.”

There was no immediate list of conditions or timelines beyond that authorization. Iran also had not yet publicly confirmed the deal.

The Strait of Hormuz links the Persian Gulf with the Gulf of Oman, and about 20% of the world’s oil and liquefied natural gas flows through it. That geography turned the standoff into an economic pressure point for households and businesses far from the region.

After the United States and Israel launched surprise attacks on February 28. Iran effectively shut down the Strait of Hormuz to most shipping traffic. Iran briefly reopened it in April as part of a ceasefire deal with the United States. but closed it again after the United States imposed its naval blockade.

The longer the disruption ran, the faster prices moved. Oil prices surged to a point that forced governments to respond on the fly: oil prices surpassed $100 a barrel on March 8 for the first time in four years. The closure. along with damage to major oil hubs in the region. contributed to what the International Energy Agency said in March was the largest disruption to the global oil markets in history.

At home, the effects filtered into everyday costs. By the end of March, the national average for a gallon of gasoline in the United States exceeded $4. In April. jet fuel prices spiked above $200 a barrel. pushing some airlines to cut routes and raise ticket prices to cover costs. The conflict also drove inflation in the United States to a three-year high.

For the political calendar. those numbers were arriving close to the midterm elections. when economists warned that the economic toll could deepen if the confrontation dragged on. Paul Krugman. for example. warned that any prolonged standoff could severely damage America’s economy. calling it “the straw that breaks the camel’s back.”.

Still, Trump’s announcement on Sunday did not clarify whether the administration’s earlier demand—that Iran stop enriching uranium—was included in the initial deal. The statement did not immediately offer further details about what Iran agreed to, beyond the authorization tied to the strait.

Pakistan’s role in the negotiations was also laid out with a concrete date. Shehbaz Sharif, the Prime Minister of Pakistan and a mediator in the talks, said the official signing ceremony would be on June 19.

In an X post, Sharif wrote, “With the agreement now in place, mediators will facilitate a series of meetings this week.” He added that the discussions would “lay the foundation for the technical talks and the official signing ceremony.”

Strait of Hormuz Donald Trump Iran US naval blockade Shehbaz Sharif oil prices gasoline prices jet fuel uranium enrichment global oil markets