Iran announced on Friday it fully reopened the Strait of Hormuz to commercial vessels, but U.S. President Donald Trump said the American blockade on Iranian ships and ports "will remain in full force" until a deal is reached with Tehran.
Iranian Foreign Minister Abbas Araghchi posted on X that the crucial waterway through which about 20% of the world's oil is shipped was now fully open to commercial vessels, as a 10-day truce in Lebanon appeared to hold.
The truce offered a pause in Israeli strikes on Lebanon and could clear one major obstacle to a deal between Iran and the U.S. and Israel to end weeks of devastating war.
Trump initially celebrated, posting on social media that Iran announced the strait "is fully open and ready for full passage." But minutes later, he issued another post saying the U.S. Navy's blockade would continue until "UNTIL SUCH TIME AS OUR TRANSACTION WITH IRAN IS 100% COMPLETE."
Trump imposed the blockade earlier this week after Iran restricted traffic through the strait due to Israeli strikes on Lebanon, which Iran said was a breach of the Pakistan-brokered cease-fire reached between the U.S., Israel and Iran.
At the time, Trump said the blockade would enforce an "all or none" policy in hopes of pressuring Iran to reopen the strait.
Trump's decision to continue the blockade despite Iran's announcement appeared aimed at sustaining pressure on Tehran, as the fate of the two-week cease-fire reached last week remains uncertain.
Direct talks between the U.S. and Iran last weekend were inconclusive, as the two nations differed over Iran's nuclear program and other sticking points.
Trump had said on Thursday that talks with Iran could happen as soon as this weekend, although that was looking increasingly unlikely by Friday afternoon, given the logistics of assembling officials in Islamabad, where the talks are expected to take place.
The head of the International Energy Agency had warned that energy shocks could get worse if the Strait of Hormuz did not reopen. Iran closed the crucial waterway shortly after the war began, threatening the worst oil shock in history.
Oil prices plunged following Araqchi's post.
The International Monetary Fund (IMF) this week lowered its forecasts for global growth and warned the global economy risked tipping into recession if the conflict was prolonged.
Later on Friday, a senior Iranian military official said Tehran would block military vessels from transiting the Strait of Hormuz,
"The passage of military vessels through the Strait of Hormuz remains prohibited," the official was quoted as telling Iranian state television, adding that civilian vessels would have to transit the waterway through designated routes and with permission of the Iranian Revolutionary Guards Navy.
French President Emmanuel Macron and British Prime Minister Keir Starmer welcomed the Strait of Hormuz reopening, but said it must become permanent
They said they will keep planning an international mission to restore maritime security, with a meeting of military planners in London next week.
Speaking after a gathering of some 50 countries, Macron said "we all demand the full, immediate and unconditional reopening of the Strait of Hormuz by all parties."
Starmer said the announcement by Iran and the U.S. must become "both lasting and a workable proposal."
He said France and the U.K. will lead a multinational mission to safeguard shipping "as soon as conditions allow."