Trump Declares Hormuz Strait Fully Open; Iran Agrees to Communication Line

U.S. President Donald Trump announced on June 22 that the Strait of Hormuz, a vital waterway for global oil transit, is fully open for navigation, calling it a "real oil gusher" and noting that more oil passed through the strait the previous day than ever before. The statement comes after a period of conflict during which Iran had blocked the strait, and U.S. and Israeli military operations were launched partly to prevent Tehran from developing nuclear weapons. Trump reiterated that as part of ongoing U.S.-Iran talks in Switzerland, the strait remains open and that Iran will "never" possess nuclear weapons. Vice President J.D. Vance confirmed the strait was reopened on June 22, following a brief second closure on June 20 after Israeli strikes on Lebanon.

Iranian authorities, including senior negotiator Mohammad Baqer Ghalibaf, agreed to establish a communications line regarding vessel passage through the Strait of Hormuz to avoid future conflicts and incidents. The agreement is part of broader negotiations between the United States and Iran, which have included a signed peace accord on June 18 and subsequent talks in Switzerland aimed at de-escalating tensions. As part of these talks, the U.S. Treasury issued a 60-day general license allowing the extraction, supply, and sale of Iranian oil under sanctions, with financial operations, insurance, and transport included. Iran has also reportedly agreed to allow International Atomic Energy Agency (IAEA) inspectors back into the country, though this has not yet been confirmed by Tehran.

The conflict, which saw the Strait of Hormuz blocked by Iran and later partially cleared by U.S. forces, had disrupted a fifth of the world's oil supply and pushed Brent crude prices to $120 per barrel. Following the reopening, oil prices fell below $80. Satellite imagery from Financial Times indicates 441 tankers are now waiting near the strait. U.S. Treasury Secretary Scott Bessent confirmed that Iran committed to ensuring free transit through the strait and permitting IAEA inspectors, while Iranian Foreign Minister Abbas Araghchi said the two sides also agreed to unfreeze some of Iran's assets, though Vance noted that this has not yet occurred.