Strait of Hormuz Reopens Then Closes Again as Iran-US Talks Stall

TLDR

• Iran’s military reclaimed control of the Strait of Hormuz on Saturday, hours after reopening it Friday
• A British naval group reported Iranian gunboats fired on a tanker in the strait
• Oil prices dropped 9% on Friday after the reopening announcement, falling below $90 a barrel
• The US naval blockade remains in place, with 23 ships ordered to turn around since it began
• Israel struck targets in Lebanon, adding pressure to an already fragile ceasefire

Iran reopened the Strait of Hormuz on Friday, sending oil prices sharply lower. By Saturday, that optimism had collapsed.

Iran’s Islamic Revolutionary Guard Corps announced it had retaken control of the waterway, citing the US refusal to lift its naval blockade. Hours later, a British maritime group reported that Iranian gunboats approached a tanker without radio warning and opened fire. The tanker and crew were reported safe.

The Strait of Hormuz carries roughly a fifth of the world’s oil and liquefied natural gas. It has been closed since the US-Israel war on Iran began in February.

Oil prices fell 13% immediately after Friday’s reopening announcement, closing down 9% below $90 a barrel — the lowest since late March. Stocks also rallied on hopes the war could end soon.

President Trump said Friday that Iran had agreed to suspend its nuclear program indefinitely and that “most of the main points” in negotiations were finalized. He also said the US naval blockade would stay in place until a deal is signed.

Iran Rejects US Blockade Terms

The US has ordered 23 ships to turn around since the blockade began, according to US Central Command.

One proposal being discussed involves the US releasing $20 billion in frozen Iranian funds in exchange for Iran surrendering its enriched uranium stockpile. Trump denied this in a phone interview, saying “no” repeatedly when asked about it.

Lebanon Ceasefire Under Strain

Israel struck targets in southern Lebanon on Saturday, saying it hit “saboteurs” who had violated the existing truce. The Lebanon ceasefire had been seen as connected to Iran’s decision to reopen Hormuz.

The developments add pressure to peace talks that were already fragile. A first round of direct US-Iran talks in Pakistan last week ended without an agreement. Pakistani and US officials said another round was being planned.

Trump told Bloomberg he may travel to Pakistan to sign an agreement. Iran said it had not yet agreed to further negotiations.

Several oil tankers made U-turns Saturday after appearing to attempt transit of the strait. Many analysts said shippers and insurers would remain cautious given the ongoing uncertainty.

Oil futures resume trading Sunday.

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