Two-week ceasefire deal putting Strait of Hormuz back in business

April 8, 2026, by Melisa Cavcic

The U.S. President Donald J. Trump has made a deal with Iran to suspend further attacks for two weeks on the Middle Eastern country in exchange for the reopening of the Strait of Hormuz, which handles 15% of global oil and 20% of global liquefied natural gas (LNG) supply flows.

LNG tanker (for illustration purposes); Source: U.S. Department of Energy

The closure of the Strait of Hormuz followed the U.S. and Israel’s attack on Iran, which started on February 28, 2026. Iran warned ships away and insurers withdrew coverage, halting tanker traffic, which spurred fears of a major energy shock, with analysts at Wood Mackenzie warning that oil prices could surpass $100 a barrel (bbl), if flows were not restored.

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The company described the disruption as a dual supply shock, since exports through the critical waterway were halted and OPEC+ – encompassing Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman – additional volumes and ultimately most of OPEC’s spare capacity, usually perceived as a key lever for balancing the global oil market, considered to be inaccessible while the waterway remained closed.

Based on last week’s data confirmed by the International Maritime Organization (IMO), there were 21 attacks on commercial shipping since the beginning of the conflict, resulting in the deaths of ten seafarers, with several more severely injured. In addition, around 20,000 civilian seafarers were said to be stranded aboard vessels in the Persian Gulf.

Even though the price of U.S. crude oil hit $117 per barrel on April 7, it dropped to below $95, after President Trump revealed “a double sided ceasefire” with Iran on social media.

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President Trump emphasized: “A big day for World Peace! Iran wants it to happen, they’ve had enough! Likewise, so has everyone else! The United States of America will be helping with the traffic buildup in the Strait of Hormuz. There will be lots of positive action! Big money will be made.

“Iran can start the reconstruction process. We’ll be loading up with supplies of all kinds, and just ‘hangin’ around’ in order to make sure that everything goes well. I feel confident that it will. Just like we are experiencing in the U.S., this could be the Golden Age of the Middle East!”

According to Rystad Energy’s estimates, the reported damage and shutdowns affecting the Gulf energy infrastructure, such as LNG assets, refineries, fuel terminals, and gas-to-liquids facilities across the Middle East amid the military conflict between the U.S.-Israel alliance and Iran, could require up to $25 billion to get repaired.