-- (Updated with additional details from Trump's Truth Social posts and the latest price movement.)
Iran on Friday declared passage for all commercial vessels through the vital Strait of Hormuz, in line with the ceasefire in Lebanon.
Hormuz will remain open for the remainder of the ceasefire, Iran's Minister of Foreign Affairs Abbas Araghchi posted on X.
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran," Araghchi said.
Oil prices fell sharply following the developments, with Brent declining about 11% to $88.73 per barrel, Murban also down 11% at $90.38/bbl, and West Texas Intermediate dropping about 13% to $82.77/bbl.
The announcement also elicited a reaction from US President Donald Trump.
"Iran has just announced that the Strait of Iran is fully open and ready for full passage. Thank you," Trump posted on Truth Social.
In multiple follow-up posts, Trump said a blockade on Iran remains in place until a final agreement is reached.
He said, "the naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100% complete."
Trump also signaled that talks are nearing completion, saying, "This process should go very quickly in that most of the points are already negotiated."
Trump also pointed to progress in clearing navigation risks in the waterway, saying, "Iran, with the help of the USA, has removed, or is removing, all sea mines."
In a separate post, Trump criticized Nato, suggesting it was not helpful earlier but offered assistance after the situation had already ended.
Trump posted, "Now that the Hormuz Strait situation is over, I received a call from Nato asking if we would need some help. I told them to stay away, unless they just want to load up their ships with oil."
Trump also thanked Saudi Arabia, UAE, and Qatar, saying, "Thank you to Saudi Arabia, UAE, and Qatar for your great bravery and help!"
Separately, he also thanked Pakistan for its role in the negotiations.
The US will retain nuclear material generated from recent operations, Trump said, stressing that no financial exchange will be involved under the arrangement.
The agreement does not involve Lebanon, Trump added, but said the US will address the situation separately, adding Israel is "prohibited" from further strikes while Washington handles Hezbollah.
"Iran has agreed to never close the Strait of Hormuz again. It will no longer be used as a weapon against the world," he posted.
The Strait of Hormuz, the primary maritime passage for most Middle East oil shipments, connects the Persian Gulf to the Gulf of Oman and handles almost 20% of global oil and gas flows.