Strait of Hormuz: Trump and Iran Claim It's 'Open' Amid Tensions

President Trump and Iranian officials say the Strait of Hormuz is "completely open" for commercial traffic. However, the reality is more complicated. The strait is critical, as it carries about one-fifth of the world’s oil and gas supplies. Yet, very few ships have moved through since the conflict began in late February. On Friday, both sides announced a deal allowing free passage in the strait, contingent on a ceasefire in Lebanon. While this sounds promising, Trump insists the U.S. naval blockade of Iranian ports remains in full effect. He won’t lift it until a complete nuclear agreement with Iran is in place. What's interesting is that financial markets reacted quickly, with oil prices falling about 9%. Still, around 700 ships, including 250 tankers, remain stuck in the Persian Gulf, carrying 165 million barrels of crude. The bottom line is that while the strait is officially open, the blockade and ongoing tensions mean commercial shipping may not fully recover anytime soon. This impacts global oil prices and can affect what you pay at the pump.