Hormuz passage 'completely open' for rest of ceasefire: Iran FM

Iran's Foreign Minister Abbas Araghchi said on Friday that the strategic Strait of Hormuz, vital for the global oil trade, will remain "completely open" as long as a ceasefire in the Middle East lasts.

"The passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire," Araghchi said on X.

It was not clear whether he was speaking of the 10-day truce agreed by Lebanon and Israel that went into effect at midnight or an earlier two-week truce between Iran and the United States that began on April 8.

Meanwhile, US President Donald Trump said his country's naval blockade of Iranian ports would remain in place until a peace deal was reached with Tehran, however, despite Iranian authorities saying they had reopened the strait.

"The naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete," Trump said on his Truth Social network, adding that "this process should go very quickly."

Oil, stock prices rally

Oil prices plunged more than 10 per cent following Iran's announcement, with both the benchmark international contract Brent and its US equivalent WTI falling below $90 per barrel.

Kathleen Brooks, research director at XTB, said the news was "having an immediate impact on markets".

Wall Street's main stock indices jumped at the opening bell, with both the S&P 500 and the Nasdaq Composite building on record highs struck the previous evening.

"This is the biggest development so far during the ceasefire, and it gives hope that the war will end soon, and supply chains will return to some normality," Brooks said.

It was not clear whether Araghchi was speaking of the 10-day truce agreed by Lebanon and Israel that went into effect at midnight or an earlier two-week truce between Iran and the United States that began on April 8.

But Araghchi's declaration bolstered hopes for further peace talks and a renewal of the ceasefire, despite US President Donald Trump saying that the US blockade of Iran's ports remains in force.

French President Emmanuel Macron and UK Prime Minister Keir Starmer were chairing a meeting of allies Friday to consider sending a multinational force to ensure free-flowing trade in the Strait of Hormuz once the conflict ends.

David Morrison at Trade Nation noted that the speed and the magnitude of the rebound of the S&P 500 — nearly 12 per cent in just over two weeks — was reinforcing the rally.

"The sharpness of the move has caught many investors offside, particularly those who sold during the first few weeks of the war, either to flatten their exposure or go net short," he said.

"Now these investors are having to pay up to re-establish their existing positions, or cover their shorts and suffer painful losses."

He said the "fear of missing out" effect is also back as stock indices move into record territory, especially as the first-quarter reporting season is showing strong earnings growth.

European stocks were higher in afternoon trading, with both Frankfurt and Paris gaining two per cent.

Asian stock markets mostly closed lower, with Tokyo among the biggest losers after reaching a record high Thursday, and Taiwan's TAIEX index dropped after hitting a market capitalisation of $4.14 trillion.

That put the index ahead of London's benchmark FTSE 100 and made the TAIEX the world's seventh-biggest index by value, according to Bloomberg data.