Strait of Hormuz Reopens After Ceasefire but Oil Prices Stay Elevated

A memorandum signed Wednesday evening ended 110 days of fighting and reopened the Strait of Hormuz to commercial traffic. Ten vessels that had been held in the area began moving out by Thursday morning, according to maritime intelligence firm Windward.

The agreement also starts a 60-day ceasefire and longer-term nuclear talks. Crude oil prices have already declined since the announcement, but consumer fuel costs remain more than 35 percent above late-February levels.

Maritime groups say the central channel is still mined and un-navigable. BIMCO safety chief Jakob Larsen stated that vessels must now use narrower routes near Iran or Oman and called for risk assessments before full traffic resumes. Clearing the waterway could require minesweepers, drones, and divers.

Senior analyst Michelle Wiese Bockmann at Windward said the process might last anywhere from six weeks to six months.

Supply-chain professor Jason Miller at Michigan State University said global inventories are low and production restarts remain uncertain. He added that petroleum-based goods such as plastic packaging will likely stay more expensive for at least the next one to two months.

Miller also noted that buyers of gasoline, food, and fertilizer should plan for continued price pressure rather than an immediate return to pre-conflict levels.