Home > World > US-Israel-Iran Latest Update: Strait of Hormuz ‘Reopens’ Under Strict Military Conditions, Oil Prices to Get Impacted Amid Temporary Ceasefire Agreement

US-Israel-Iran Latest Update: Strait of Hormuz ‘Reopens’ Under Strict Military Conditions, Oil Prices to Get Impacted Amid Temporary Ceasefire Agreement

Iran allows limited safe passage through the Strait of Hormuz under a two-week ceasefire, easing US-Iran tensions and opening the door for further diplomatic talks.

By: Neerja Mishra
Last Updated: April 8, 2026 07:30:22 IST

Iran and the United States have reached a rare moment of de‑escalation in a conflict that had pushed global tensions to the brink, agreeing to a two‑week ceasefire that includes reopening the Strait of Hormuz for safe passage.

After weeks of fierce confrontations and threats of further military action, both sides paused hostilities, a development that came less than two hours before a US deadline that could have triggered fresh strikes. This temporary peace offers a window for negotiations, but it comes with strict terms and ongoing diplomatic challenges.

US-Israel-Iran Latest Update: Strait of Hormuz Reopens Under Military Coordination

The Strait of Hormuz, a crucial waterway through which roughly 20% of the world’s oil supply normally passes, will allow limited safe passage during the ceasefire, but only with strict military oversight by Iranian forces. Iran’s Foreign Minister Seyed Abbas Araghchi confirmed that for the next two weeks, vessels can transit the strait through direct coordination with Iran’s armed forces and under careful technical supervision.

This arrangement marks a significant shift from recent weeks, when Iran’s control over the passage had effectively blocked many tankers and driven energy prices sharply higher. Coordinated transit aims to reduce the risk of surprise attacks or missteps, with both sides closely monitoring movements to prevent renewed clashes.

US-Israel-Iran Latest Update: What Are the Conditions on Which the Strait of Hormuz is Opened?

The reopening is conditional and temporary, linked directly to the ceasefire terms. Iran has stated that its armed forces will only allow safe passage if all attacks against Iranian territory cease during the ceasefire window. This reflects Tehran’s insistence on a reciprocal halt to hostilities before relaxing its blockade of the strategically vital waterway.

Technical limitations also apply, with Iranian forces emphasising that safety protocols and coordination are necessary for any vessel entering and exiting the strait. These conditions are designed to prevent conflict flare‑ups and ensure that maritime transit does not become a trigger for renewed fighting.

US-Israel-Iran Latest Update: Ceasefire Agreement Between US‑Iran

The two‑week ceasefire, brokered with diplomatic assistance from Pakistan, was announced just hours before the US deadline that had threatened a new round of intensive strikes. Under the deal, the US and its allies will suspend military operations against Iran, while Tehran halts its defensive actions if attacks against it stop.

Pakistan’s Prime Minister Shehbaz Sharif and Army Chief Field Marshal Asim Munir played key roles in mediating the agreement, with both sides crediting Islamabad for helping bring about the temporary cessation of violence. This pause is seen as a necessary first step toward broader talks on a long‑term resolution.

US-Israel-Iran Latest Update: Iran’s Position in the Agreement

Iran has publicly framed the ceasefire as a diplomatic success and part of a broader peace initiative, claiming that the United States accepted aspects of its 10‑point proposal as a basis for further negotiations. Tehran emphasised its right to control and supervise the Hormuz corridor, even as it permits passage during the ceasefire.

Despite agreeing to the temporary opening of the strait, Iran also continues to press for security guarantees, reconstruction assistance, sanctions relief, and recognition of its sovereign rights over the waterway in future talks. These demands highlight Tehran’s broader political goals beyond the immediate pause in fighting.

US-Israel-Iran Latest Update: What is Iran’s 10-Point Plan?

Iran’s 10-point plan is designed as a framework for negotiations with the United States and to maintain regional stability. It outlines key demands and measures to ensure both security and diplomatic progress.

The main points of the plan are:

  1. Immediate cessation of US strikes on Iranian territory to prevent further escalation.
  2. Full control and monitoring of maritime traffic through the Strait of Hormuz to ensure safe passage under Iranian supervision.
  3. Security guarantees for Iran’s critical infrastructure, borders, and strategic assets.
  4. Compensation and reparations for damages caused by previous conflicts or attacks.
  5. Coordinated mechanisms for international shipping, ensuring vessels operate under agreed safety protocols.
  6. Clear timelines for ending hostilities, providing predictability for both military and civilian operations.
  7. Mutual confidence-building measures to restore trust between Iran and the United States.
  8. Involvement of regional mediators to monitor and enforce compliance with the agreement.
  9. Steps toward long-term political resolution of disputes, aiming to prevent future conflicts.
  10. Measures to protect civilian populations and minimise harm during ongoing tensions.

This plan forms the backbone of Iran’s position in the ceasefire negotiations, giving both sides a structured approach to maintain peace while addressing strategic concerns.

US-Israel-Iran Latest Update: Strait of Hormuz Reopening Impact

Markets responded quickly to the ceasefire and news of the strait reopening, with oil prices dropping sharply below $100 per barrel as traders welcomed the easing of risks to energy supplies. The temporary flow of crude and gas through the waterway reduced immediate global energy volatility and encouraged optimism among investors.

However, analysts warn that the ceasefire’s success is fragile. Missile and drone threats in the wider Gulf region persist, and a return to conflict could quickly reverse the gains made in oil markets. The reopening of the strait also resets regional dynamics, giving all parties an incentive to pursue diplomacy — but it does not guarantee a permanent peace deal.

The two‑week ceasefire now opens a crucial diplomatic window. Meetings between US and Iranian representatives are expected in Islamabad this week, where officials aim to build on Iran’s 10‑point proposal and US conditions to secure a more lasting deal.

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