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The United States and Iran announced Sunday they had reached a peace agreement to end nearly four months of war.
U.S. President Donald Trump declared that the Strait of Hormuz would reopen on Friday, June 19, and ordered the immediate removal of the U.S. naval blockade on Iranian ports, but the global shipping industry urged caution, with Japanese operators warning that mine-clearing details must be resolved before vessels transit the waterway.
"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!" Trump wrote on his Truth Social platform.
"I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," he said, adding, "Ships of the World, start your engines. Let the oil flow!"
The Memorandum of Understanding (MoU) is scheduled to be formally signed on June 19 in Geneva, Switzerland.
U.S. Vice President JD Vance said he planned to attend the signing, adding that Trump himself could also be present.
"We're still figuring out the logistics on who's going to attend that signing ceremony," Vance said.
Pakistani Prime Minister Shehbaz Sharif, whose country served as a mediator alongside Qatar, confirmed the agreement in a post on X, saying both sides had declared "the immediate and permanent termination of military operations on all fronts, including in Lebanon."
Despite the announcement, the shipping industry is not moving immediately.
The Japanese Shipowners' Association, which has 38 Japanese-linked vessels stranded in the strait, said it welcomed the agreement but needed to "wait a little longer" for concrete details.
"There have been news reports that mines had been laid in the area," a spokesman said. "Given the situation, we cannot simply say, 'Right then, let's go' based on news of the agreement alone."
An early signal of movement nonetheless came from the tanker market.
A liquefied natural gas tanker chartered by India's Petronet crossed the Strait of Hormuz heading east after the deal announcement, ship-tracking data from Kpler and LSEG showed. The vessel had picked up its cargo at Qatar's Ras Laffan in March and had been waiting west of the strait since then.
A source familiar with the matter speaking to Reuters said the cargo is destined for the Dahej terminal in India.
Trump said the Strait of Hormuz would open on Friday "for purposes of mine removal," signaling that clearance operations were already being factored into the implementation timeline before commercial traffic resumes fully.
Oil markets responded immediately, with Brent crude futures falling 4% in early Monday trading, while Asian stock markets jumped.
"The lack of details, especially on freedom of shipping, is a concern but not one that should constrain markets today as the surge in risk appetite plays out," said Sean Callow, a senior FX analyst at ITC Markets who spoke to Reuters.
The conflict, which began with joint U.S.-Israeli strikes on Iran on Feb. 28, has killed thousands, predominantly in Iran and Lebanon, and shut the Strait of Hormuz to commercial shipping, a waterway through which roughly a fifth of the world's oil and liquefied natural gas previously traveled, along with aluminum, urea, and other vital commodities.
Britain, Germany, France, and Italy issued a joint statement welcoming the agreement. It said they were prepared to lift sanctions on Iran in response to "clear, verifiable steps" to limit its nuclear program.
"We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz," British Prime Minister Keir Starmer said, adding, "Iran must never have a nuclear weapon."
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