Adds new statements by Trump and other details
The strait of Hormuz will be "completely open" to commercial vessels for the duration of the US-Iran ceasefire, Iran and the US said on Friday.
Iranian foreign minister Seyed Araghchi announced the opening of the strait in a post at 8:45 am ET. US president Donald Trump moments later said the strait was "COMPLETELY OPEN" and ready for passage. A naval blockade the US military began enforcing against vessels entering or leaving Iranian ports earlier this week would remain in full effect until "OUR TRANSACTION WITH IRAN IS 100% COMPLETE", Trump wrote.
Ice Brent crude futures fell sharply on the news. The front-month contract was trading at $86.26/bl as of 10:49am ET, down by more than 13pc.
Commercial vessels transiting the strait of Hormuz will use a "coordinated route" already announced by Iran, Araghchi said on Friday. The US had previously accused Iran of placing mines in at least some parts of the strait. Trump said that those mines were being removed, with US support.
"Iran, with the help of the U.S.A., has removed, or is removing, all sea mines!" Trump said.
Trump subsequently said on Friday that Iranian officials had agreed to "never" again close the strait of Hormuz, through which about 20pc of global oil flows.
"It will no longer be used as a weapon against the World!" Trump wrote.
France was among the Nato members that previously said they were willing to help stabilize the strait of Hormuz once hostilities had de-escalated. Trump said he received a call from Nato on Friday offering assistance, but he said he told them to "STAY AWAY", adding that Nato was "useless when needed". Under the terms of a "deal" Trump described on Friday, the US would "get all Nuclear 'Dust'" remaining in Iran, in an apparent reference to enriched uranium sites that were targeted by a US bombing campaign.
Vessel traffic through the strait of Hormuz has been heavily restricted since the war with Iran began on 28 February, even after the US and Iran agreed to a two-week ceasefire that is set to expire on 22 April. The potential reopening of the strait would allow an estimated 120 loaded tankers to depart from the Mideast Gulf and calm markets, IEA executive director Fatih Birol said earlier this week.
Just minutes before Trump's post, US Central Command, which oversees Middle East-based US forces, said it had directed a merchant vessel to return to an Iranian port as part of its enforcement of the blockade. US Central Command said that, so far, 19 ships have complied with directions to return to Iran and zero had evaded the blockade.
In his announcement of the reopening Friday, Araghchi cited the ceasefire in Lebanon in saying "the passage for all commercial vessels through the strait of Hormuz is declared completely open for the remaining period of ceasefire, on the co-ordinated route as already announced". Trump wrote that the re-opening of the strait was not tied "in any way" to Lebanon.
