Is Strait of Hormuz Still Closed Post US-Iran Ceasefire?

The Strait of Hormuz reportedly remains closed despite the U.S.-Iran ceasefire, with Iran also moving to charge toll payments for passage through this major oil chokepoint. In response, U.S. President Donald Trump has warned Iran about charging tolls even as both countries move to begin negotiations to end the war.

Strait of Hormuz Effectively Still Closed

According to an NBC report, the traffic through the Strait of Hormuz remained at a virtual standstill 24 hours after the announcement of the U.S.-Iran ceasefire. The report also noted that only five bulk carriers transited through the major oil chokepoint in the first 24 hours of the ceasefire agreement.

Furthermore, S&P Global Market Intelligence revealed that only nine oil vessels had passed through the strait between Wednesday and Thursday. This is still notably way lower than the average of over 100 oil vessels that passed through the passageway daily before the U.S.-Iran war began.

This development with the Strait of Hormuz is significant as one of the conditions for the U.S.-Iran ceasefire was the reopening of the strait, which Trump has clamored for throughout the war. As such, its effective closure risks hindering the already fragile ceasefire deal.

It is worth noting that Bloomberg also reported that, as of April 10, the strait remains effectively shut, with transits over the past 24 hours consisting mainly of Iranian-linked ships. Meanwhile, Iran has also adopted transit fees for ships passing through the passageway, collecting tolls in Bitcoin and the Chinese yuan.

The effective closure of the Strait of Hormuz explains why oil prices continue to hover around the $100 level despite the U.S.-Iran ceasefire. WTI oil futures are up today, currently trading at around $99, according to TradingView data. Brent crude oil futures are trading at around $97, up today as well.

Trump Says Iran Not Keeping To Ceasefire Agreement

In a Truth Social post, Trump noted that Iran is not adhering to the ceasefire agreement regarding the Strait of Hormuz. “Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz. That is not the agreement we have!” he said.

In another post, the U.S. president stated that Iran doesn’t have any cards other than a “short term extortion of the World by using International Waterways.” He added that the only reason they are alive is to negotiate.

The U.S.-Iran negotiations are set to take place in Pakistan tomorrow despite the fragile ceasefire. The Bitcoin price and the broader crypto market have rallied ahead of these talks, with market participants optimistic about successful talks.

Trump had said that he is optimistic that a deal to end the war is within reach. However, the U.S. president told the New York Times that they are reloading the U.S. warships with ammunition to resume strikes in case peace talks in Pakistan fail.