US-Israel-Iran War Latest News: Strait of Hormuz Reopens, Iran Confirms — Will It Impact Global Oil Prices?

Iran reopens Strait of Hormuz, allowing safe oil shipping after US pauses operation. Trump warns of renewed strikes if deal fails, raising hopes of de-escalation in West Asia.

By: Neerja Mishra
Last Updated: May 6, 2026 19:13:44 IST

US-Israel-Iran War Latest News: The Strait of Hormuz, one of the world’s most critical oil transit routes, has reopened after weeks of disruption, signalling a possible easing of tensions between the United States and Iran.

The development comes after Iran indicated it would allow safe passage for commercial ships, following a pause in US military escort operations ordered by Donald Trump.

The move has raised cautious optimism in global markets and diplomatic circles, as it could mark the beginning of de-escalation in a conflict that had threatened global energy supplies.

US-Israel-Iran War Latest News: Strait of Hormuz Reopening, Iran Confirms

Iran’s Revolutionary Guard has announced that shipping traffic through the Strait of Hormuz will resume under new security arrangements. The waterway had been effectively restricted since late February, when tensions escalated following US and Israeli military actions.

Officials stated that the navy would no longer block vessel movement, allowing global trade routes to function again. The Strait, which handles a significant portion of the world’s oil shipments, is vital for maintaining stable energy supplies.

What Iran Said on Safe Passage?

Iran emphasised that ships would now be able to pass safely, provided they follow updated maritime guidelines. In its official statement, the Revolutionary Guard acknowledged the cooperation of shipping operators during the crisis.

“We express our thanks to the captains and owners of ships stationed in the Persian Gulf and the Sea of Oman for their cooperation in transiting through the Strait of Hormuz in accordance with Iranian regulations and for the desirable participation of vessels in the regional maritime security,” the online statement said.

“With the end of the aggressors’ threats and in the shadow of new procedures, the possibility of safe and sustainable passage through the strait will be provided,” it added, without specifying the new procedures.

Trump Pauses US Military Operation

The reopening follows a key decision by Donald Trump to temporarily halt a US-led maritime escort mission that had been guiding merchant ships through the strait. The operation was launched to counter threats and ensure safe navigation during the peak of the conflict.

Trump indicated that the pause was linked to progress in negotiations and the possibility of a broader agreement with Iran.

Trump Issues Warning Despite Progress

Despite the positive development, Trump made it clear that the situation remains fragile and dependent on Iran’s next steps.

“Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran,” Trump said. “If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”

His remarks underline that while tensions have eased, the threat of escalation has not completely disappeared.

US-Israel-Iran War Latest News: Global Price Impact

The reopening of the Strait of Hormuz has quickly influenced global oil markets, with prices reacting to reduced fears of supply disruption. After recent volatility, crude benchmarks have started to stabilise:

  • Brent Crude is hovering around $102–$104 per barrel, after earlier spikes
  • West Texas Intermediate (WTI) is trading near $94–$96 per barrel

These levels reflect a cooling in market panic as traders factor in smoother oil flows from the Gulf region.

At the same time:

  • Shipping and insurance costs are expected to ease, lowering global trade pressure
  • Fuel-importing nations like India could see some relief if prices remain stable
  • Overall, sentiment has shifted toward cautious optimism. However, analysts warn that oil prices could remain volatile depending on how US-Iran negotiations progress in the coming days.

US-Israel-Iran War Latest News: What’s Next?

The reopening of the Strait is likely to stabilise global energy markets in the short term. However, experts warn that the situation depends heavily on ongoing diplomatic efforts between the US and Iran.

If both sides move forward with negotiations, the region could see sustained calm. But any breakdown in talks could quickly reverse progress and trigger renewed tensions.

Most Popular

The Sunday Guardian is India’s fastest
growing News channel and enjoy highest
viewership and highest time spent amongst
educated urban Indians.

The Sunday Guardian is India’s fastest growing News channel and enjoy highest viewership and highest time spent amongst educated urban Indians.

© Copyright ITV Network Ltd 2025. All right reserved.