Iran’s IRGC Reverses Strait of Hormuz Opening Amid Ongoing US Blockade
On Saturday, Iran’s Islamic Revolutionary Guard Corps (IRGC) announced that control of the Strait of Hormuz had “returned to its previous state,” effectively reversing a limited opening declared the day before. The move came shortly after oil markets reacted to Friday’s announcement, with benchmark crude prices slipping sharply before stabilizing over the weekend.
Background of the Closure
The Strait of Hormuz, a narrow waterway linking the Persian Gulf to the Gulf of Oman, sees roughly 20 million barrels of oil per day pass through — about one‑fifth of global seaborne oil trade. Iran first closed the strait on 28 February 2026 after joint U.S.–Israeli strikes on Iranian military sites. Over the following weeks, the United States imposed a complete naval blockade on Iranian ports beginning 13 April 2026, citing the need to pressure Tehran into a new nuclear agreement.
Friday’s Announcement and Immediate Market Reaction
Following a ceasefire‑related diplomatic push in Lebanon, Iran’s authorities said on Friday that they would allow limited passage through the strait under strict conditions: merchant vessels only, no ships from “enemy” countries, and coordination with IRGC forces. The news triggered a rapid sell‑off in oil markets:
- Brent crude fell roughly 9.5 % to $89.89 per barrel.
- West Texas Intermediate (WTI) dropped more than 10 % to $84.89 per barrel.
These moves were reported by Reuters and Bloomberg, which noted that several tankers turned around while a small convoy of LPG carriers managed to transit.
IRGC’s Saturday Statement
By Saturday morning, the IRGC issued a new declaration stating that the strait was now under “strict management and control of the armed forces.” The corps accused the United States of “piracy” for maintaining the naval blockade, which it said violated the ceasefire. According to the IRGC, the waterway will remain closed until the blockade ends.
The statement directly contradicted earlier remarks by President Donald Trump, who had asserted that the blockade would “remain in full force” until Iran signs a nuclear deal. White House deputy press secretary Anna Kelly reiterated on Friday that the strait was “fully open for business,” without acknowledging the IRGC’s reversal.
US Position and Contradictory Statements
U.S. officials have continued to emphasize that the naval blockade remains a tool of leverage in negotiations over Iran’s nuclear program. They maintain that the blockade is lawful under international maritime law, a position that Tehran rejects. The divergence in messaging has contributed to uncertainty among shipping companies and insurers, many of whom have opted to reroute vessels around the Cape of Good Hope to avoid potential delays or seizures.
Impact on Global Oil Markets
Analysts from the International Energy Agency (IEA) warn that a prolonged closure of the Strait of Hormuz could disrupt oil supplies for up to two years, particularly affecting refineries in Asia that rely heavily on Middle Eastern crude. While prices showed signs of recovery ahead of the Monday, 20 April 2026 market open, the IEA cautioned that any further escalation could renew volatility.
Diplomatic Efforts and Outlook
Amid the standoff, Pakistan’s army chief concluded a three‑day visit to Tehran on Friday to arrange a second round of nuclear talks after an initial round in Islamabad failed to yield an agreement. Both sides have expressed willingness to return to the negotiating table, but substantive progress remains elusive as long as the blockade and the strait’s status remain contested.
For now, the Strait of Hormuz stays closed to most commercial traffic, with only vessels that meet Iran’s stringent conditions permitted to pass. The situation underscores how geopolitical flashpoints in critical maritime chokepoints can reverberate through global energy markets, prompting close watch from traders, policymakers, and industry stakeholders alike.
