Iran says Hormuz Strait open after Lebanon truce, Trump expects Iran deal 'soon'

WASHINGTON: Iranian Foreign Minister Abbas Araqchi said the Strait of Hormuz was open following a ceasefire agreement in Lebanon, while US President Donald Trump said talks could take place this weekend and he believed a deal to end the Iran war would come "soon".

Araqchi said in a post on X the Strait was open for all commercial vessels for the remainder of the US-brokered 10-day truce agreed on Thursday between Israel and Lebanon to halt fighting between Israeli forces and Iran-backed Hezbollah.

Trump told Reuters on Friday (Apr 17) that the US will work with Iran to recover its enriched uranium and bring it back to the United States as part of any deal.

US-Israeli strikes on Iran began on Feb 28, triggering Iranian attacks on Gulf neighbours and reigniting the Israel-Hezbollah conflict in Lebanon.

Thousands have been killed and the conflict effectively shut the Strait of Hormuz - through which a fifth of the world's oil and liquefied natural gas usually transits - threatening the worst oil shock in history.

OIL PRICES TUMBLE, STOCKS JUMP

Oil prices fell more than 10 per cent, extending earlier losses after Araqchi's post. Global stocks, already trading near record highs, jumped further on the news. 

Major shipping companies reacted more cautiously, signalling it may take more time for traffic through the chokepoint to return to normal levels - about 130 ships a day before the war.

Germany's Hapag-Lloyd said it would refrain from passing through the strait while it assessed the announcement. The Norwegian Shipowners' Association said several issues needed clarification, including the possible presence of sea mines.

The US Navy warned in an advisory to seafarers that the mine threat in parts of the waterway was not fully understood and avoidance of the area should be considered.

A senior Iranian official said ships could pass through the Strait only under coordination with Iran's Islamic Revolutionary Guard Corps.

After a video conference on Friday, more than a dozen countries said they were willing to join an international mission to protect shipping in the Strait when conditions permit, Britain said.

US BLOCKADE REMAINS IN PLACE

Shortly after Araqchi's statement, Trump posted on Truth Social: "Iran has just announced that the Strait of Iran is fully open and ready for passage." 

However, he said the US military blockade of ships sailing through the Strait to Iranian ports - announced after talks with Iran last weekend in Islamabad ended without agreement - would remain until "our transaction with Iran is 100 per cent complete".

An Iranian official later told Fars news agency Tehran would consider the Strait's continued blockade by US forces a violation of the ceasefire and would again close the waterway.

Trump told Reuters on Friday there could probably be more talks this weekend. Some diplomats said that was looking unlikely given the logistics of assembling officials in the Pakistani capital, where the talks are expected to take place.

DIPLOMACY PROGRESS

A Pakistani source involved in mediating between the US and Iran said there was progress in backdoor diplomacy and that an upcoming meeting could result in the signing of a memorandum of understanding, followed by a comprehensive deal within 60 days.

"Both sides are agreeing in principle. And technical bits come later," the source said on condition of anonymity.

A senior Iranian official told Reuters there had been an agreement on unfreezing billions of dollars in Iranian assets, as part of the accord to reopen the Strait, without giving a timeline.

One key sticking point has been Tehran's nuclear programme. At last weekend's talks, the US proposed a 20-year suspension of all Iranian nuclear activity, while Iran suggested a halt of three to five years, according to people familiar with the proposals.

Iran has demanded the lifting of international sanctions, while Washington has pressed for any highly enriched uranium to be removed from Iran. Two Iranian sources have said there were signs of a compromise on the HEU stockpile, with Tehran considering shipping part of it out of the country.

Trump told Reuters the US would bring Iran's enriched uranium back to the United States. "We're going to go in with Iran, at a nice leisurely pace, and go down and start excavating with big machinery ... We'll bring it back to the United States," he said during a phone interview.

He mentioned "nuclear dust", a reference to what he believes remains after the United States and Israel bombed Iran's nuclear installations in June last year.

Despite Trump's optimism, Iranian sources told Reuters on Friday that "gaps remained to be resolved" before reaching a preliminary deal, while senior clerics struck a defiant tone during Friday prayers.

In Tehran, cleric Ahmad Khatami said: "Our people do not negotiate while being humiliated," while in Isfahan, the imam said: "We did not accept the terms proposed by the other party."

In Islamabad, troops were deployed along routes into the capital on Friday, though roads remained open and the government had not ordered business closures, as it did ahead of the previous meeting.