Iran Reopens the Strait of Hormuz, but Threatens to Close it Again as the US Maintains its Blockade

Major developments we’re following:

• Iran said Friday it fully reopened the Strait of Hormuz to commercial vessels, but U.S. President Donald Trump said the American blockade on Iranian ships and ports “will remain in full force” until Tehran reaches a deal with the U.S., including on its nuclear program.
• Iranian officials said the blockade was a violation of last week’s ceasefire agreement between Iran and the U.S. The strait “will not remain open” if the blockade continues, Iran’s parliamentary speaker, Mohammad Bagher Qalibaf, posted on X early Saturday. Trump imposed the blockade earlier this week after Iran restricted traffic through the strait due to fighting in Lebanon, which Iran claimed was a breach of the Pakistan-brokered ceasefire. Trump later suggested a second round of direct US-Iran talks could happen this weekend.
• Oil prices fell 9% and the Dow jumped as much as 1,100 points after Iran said the strait is open, meaning tankers can resume shipments from the Persian Gulf. U.S. stocks notched a third straight weekly gain on hopes of avoiding a worst-case economic scenario. Data firm Kpler said markets showed “cautious optimism” but warned it could take “months, not weeks” to return to normal.
• A 10-day ceasefire in Israel and Lebanon began at midnight and appears to be holding after more than a month of war between Israel and Hezbollah, though the Iran-backed Lebanese militant group is not a party to the deal. Israeli Prime Minister Benjamin Netanyahu said Israel is “not finished yet” with Hezbollah. Hezbollah said its response will depend on how events unfold.
• The fragile calm has prompted thousands of displaced Lebanese families to head home. The Israel-Hezbollah war has displaced over a million people in the tiny country. Nearly 2,300 people in Lebanon have been killed by Israeli air strikes.

Source: AP news