Strait of Hormuz Fully Open, Donald Trump Says World Oil Prices Will Drop Dramatically
JAKARTA - US President Donald Trump announced that the US had signed an initial peace deal with Iran. Through this agreement, Trump hopes that the Strait of Hormuz - one of the most vital commercial shipping routes in the world - can be fully reopened starting Friday (19/6).
Trump made the announcement on the sidelines of a bilateral meeting with French President Emmanuel Macron ahead of the G7 Summit in Evian-les-Bains, France.
"I think a lot of wonderful things will happen in the Middle East. The most important thing is that oil prices have dropped significantly and the stock market has skyrocketed like a rocket today," Trump said.
Armistice of US-Iran Relations and the Fate of the Strait of Hormuz
Although Trump is optimistic that the shipping lane will open this weekend, a senior US official noted that the total normalization of traffic in the Strait of Hormuz may take up to two weeks.
The draft memorandum of understanding (MoU) is scheduled to be released after the two countries inaugurate it in Switzerland on Friday. In the agreement, some crucial points agreed upon include:
Opening the Toll-Free Route: The Strait of Hormuz will be opened for 60 days without commercial toll fees. Cessation of Hostilities: The US agreed to cease hostilities and lift the naval blockade of Iranian ports. Sanctions Still Running: Trump reiterated that he would not ease other economic sanctions until Iran fulfilled all its obligations, especially ensuring that they did not have nuclear weapons.Signing Details: US Vice President J.D. Vance confirmed that this initial agreement had been signed digitally. The document was signed by Donald Trump, J.D. Vance, and the Speaker of the Iranian Parliament, Mohammad Bagher Qalibaf.
60-Day Negotiation Period and US Military Anticipation
Following this initial agreement, the US and Iran will enter a 60-day technical negotiation period to discuss the fate of Iran's nuclear development program in more detail. Vice President J.D. Vance was appointed to directly lead the negotiating team from the US side in Geneva, Switzerland.
Despite the diplomatic process underway, the US military confirmed that it would maintain its troop posture in the Middle East. This step was taken to ensure that Tehran actually fulfilled its commitments.
Washington itself has significantly increased the number of troops in the region since the military operation began in February.
Big Impact on Inflation and Global Energy Markets
This softening attitude from both sides brings a fresh wind to the world economy. Before the conflict heated up, the Strait of Hormuz was the global energy artery that was passed through by about 20 percent of the world's oil supply.
The closure of the strait has previously disrupted commodity markets, triggering a surge in gas prices in the US, and raising concerns about global inflation. For the Trump administration, restoring free passage in the Strait of Hormuz is a key geopolitical priority to stabilize the domestic economy.
Although Iran has agreed not to impose conventional toll rates, they are reportedly still insisting on charging for operational costs related to maritime safety and environmental protection in the region.