Summary
- President Donald Trump said he had approved the resumption of transit through the Strait of Hormuz and the lifting of the blockade by the U.S. Navy following the completion of negotiations with Iran.
- He said the Strait of Hormuz is a key energy shipping route through which about 20%% of global crude oil and natural gas cargo flows pass.
- Markets are focused on whether a normalization of shipping through the strait will ease supply concerns from the Middle East and calm global oil prices and energy market volatility.
Forecast Trend Report by Period
President Donald Trump said he had formally approved the resumption of transit through the Strait of Hormuz and ordered the U.S. Navy to lift its blockade after negotiations with Iran were completed.
In a Truth Social post on June 14, Trump said "negotiations with Iran have been completed" and that he was authorizing the strait's full reopening with no transit fees. He also ordered the U.S. Navy to immediately end its blockade.
"All ships around the world, start your engines," Trump wrote. "Let the oil flow again."
The remarks indicate Trump's intention to restore normal traffic in the Strait of Hormuz, which had effectively been shut down as military clashes between the U.S. and Iran intensified in recent days.
The Strait of Hormuz is a key energy shipping route through which about 20% of global crude oil and natural gas cargo flows pass. International oil prices have surged as rising tensions between the two countries restricted transit through the waterway.
Markets are watching whether a normalization of shipping through the strait could ease concerns over Middle East supply disruptions and help calm volatility in global oil and energy markets.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
