The Strait of Hormuz is expected to fully reopen on Friday following a new agreement between the United States and Iran aimed at ending recent hostilities and restoring normal maritime activity in the key oil shipping route.

US President Donald Trump announced that vessels have already started moving through the waterway, describing the development as a major step toward stabilising global energy flows.

The strategic passage, which connects the Persian Gulf to the Arabian Sea, had been disrupted during months of conflict involving Iran, a situation that earlier pushed oil prices higher and raised concerns about global inflation.

Under the terms of the deal, brokered with support from mediators including Pakistan, both sides agreed to restore safe passage for commercial shipping while broader negotiations continue on security and nuclear-related issues.

Iranian officials said the agreement marks an end to active fighting, though they stressed that further discussions are needed to secure a lasting settlement and ensure compliance by all parties involved.

Despite the announcement, Tehran maintained caution, pointing to past breakdowns in international agreements and insisting that guarantees would be necessary for long-term trust.

The reopening is expected to ease pressure on global oil markets, as the Strait of Hormuz is responsible for a significant portion of the world’s crude exports.

Oil prices reacted immediately to the news, falling as traders anticipated improved supply stability and reduced geopolitical risk.

The development is being viewed internationally as a key step toward de-escalation in the Middle East, although analysts say lasting peace will depend on the full implementation of the agreement and future diplomatic progress.