U.S.-Iran Ceasefire Agreement Allows Temporary Safe Passage Through Strait of Hormuz

U.S. President Donald Trump, includes provisions for safe passage through the Strait of Hormuz for two weeks. The agreement aims to address a blockade that stranded numerous oil and gas tankers. Shippers and refiners sought logistical clarity on Wednesday as the waterway, critical for global energy trade, began to reopen.

More than 180 tankers carrying 172 million barrels of crude oil and refined products remained inside the strait as of Tuesday, according to ship tracker Kpler. Over 1,000 ocean-going vessels were trapped within the Persian Gulf, creating a backlog expected to take more than two weeks to clear even under normal conditions.

Iran's Foreign Minister Abbas Araqchi stated that Tehran would cease counter-attacks and provide safe passage in coordination with its armed forces, considering technical limitations.

The Strait of Hormuz blockade began on February 28 in response to U.S. and Israeli attacks on Iran. The waterway handles one-fifth of global oil and liquefied natural gas cargoes, as well as one-third of the global fertilizer trade. The disruption caused energy prices to rise and affected economies, particularly in Asia, the main buyers of oil shipped through the strait.

“— Abbas Araqchi, Iran's Foreign Minister, Wednesday (CBC)”

Iran allowed passage for vessels without U.S. or Israeli connections during the blockade, though it imposed tolls up to $2 million for transit. Tankers or container ships from Oman, India, Malaysia, Japan, and France crossed in recent days. U.S. Secretary of War Pete Hegseth noted that the U.S. imports only a small fraction of its energy from the strait.

Concerns Canada, Great Britain, Germany, France, Italy, and the European Union issued a joint statement welcoming the ceasefire and committing to ensure freedom of navigation, without specifying actions. Ideas discussed include military patrols to accompany commercial ships.

China's foreign ministry called for joint efforts to resume normal trade, while Japanese Prime Minister Sanae Takaichi held talks with Iran's president. South Korea's government pledged support for its 26 stranded flagged vessels and aimed to facilitate their passage soon, despite an advisory to avoid the area.

Shipping executives expressed caution, with many awaiting confirmation that the ceasefire holds before committing vessels. Danish shipping group Maersk stated it would base transit decisions on risk assessments and guidance from authorities. Iranian Ambassador to the UN in Geneva Ali Bahreini indicated Tehran would approach future U.S. peace talks with caution due to trust issues and that the conflict would influence the strait's legal regime.

Iran is drafting a protocol with Oman requiring ships to obtain permits and licenses. Experts noted that tankers bound for Iranian-friendly countries may transit first.

prices dropped on Wednesday after the announcement. Analysts described market sentiment as cautiously optimistic, with focus on whether shipping normalizes and the truce leads to a durable agreement. The 14-day period may not suffice to fully restore confidence, particularly for Gulf loading routes.

Clearing the backlog could extend beyond the ceasefire duration, given the volume of vessels. Shipping association Bimco advised against leaving the Gulf without prior coordination with the U.S. and Iran due to risks. Legal experts emphasized the need for multinational efforts and diplomacy to sustain open access to the strait.