Strait of Hormuz to reopen as US and Iran strike two-week ceasefire
After almost six weeks of war across the Middle East, the US and Iran have agreed to a two-week ceasefire, including safe passage through the Strait of Hormuz – but will ships have to pay a toll?
READING LEVEL: RED
A two week ceasefire* agreement has been reached between the US and Iran following almost six weeks of conflict across the Middle East.
Iran said it would guarantee safe passage for ships passing through the vital Strait of Hormuz* for two weeks, announcing that the pause would be used for talks with the United States on ending the war, starting Friday in Pakistan’s capital, Islamabad.
“For a period of two weeks, safe passage through the Strait of Hormuz will be possible via co-ordination with Iran’s Armed Forces and with due consideration of technical limitations,” Iranian Foreign Minister Abbas Araghchi posted on social media platform X.
The Islamic republic’s Supreme National Security Council said in a separate statement the negotiations were set to last two weeks but could be “extended by mutual agreement of the parties.”
HOW THE CEASEFIRE HAPPENED
Earlier, in a social media post made on Tuesday local time, US president Donald Trump had threatened to wipe out the Iranian civilisation unless Iran made an acceptable deal with him that included reopening the Strait of Hormuz.
The threats were widely condemned by U.N. Secretary-General Antonio Guterres, Pope Leo XIV and many US Democrats in Congress. An Associated Press (AP) report said that because the threats didn’t seem to account for the harm to civilians, some experts claimed strikes such as these could violate international law*.
About 90 minutes before his 10am AEST deadline, Mr Trump posted on his Truth Social account that after speaking with Pakistan’s leaders, he had agreed to delay the threatened assault on Iran’s people and infrastructure* if the Strait of Hormuz was reopened.
“Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” he wrote.
“This will be a double sided CEASEFIRE!”
Mr Trump said the US had received a 10 point proposal from Iran that was “a workable basis on which to negotiate.”
“Almost all of the various points of past contention* have been agreed to between the United States and Iran, but a two-week period will allow the Agreement to be finalised and consummated*,” he wrote.
“On behalf of the United States of America, as President, and also representing the Countries of the Middle East, it is an Honour to have this Longterm problem close to resolution.”
While Iran’s Supreme National Security Council said in a statement that it had accepted the two week ceasefire and would start negotiations with the US on Friday, the war was not officially over just yet.
“It is emphasised that this does not signify the termination of the war,” the statement said. “Should the slightest error be committed by the enemy, it shall be met with full force.”
While an unnamed White House official claimed that Israel was part of the ceasefire agreement and had agreed to suspend its bombing campaign for two weeks, an Israeli military spokesman later told US publication CNN that “Israel is still carrying out strikes in Iran.”
Later on Wednesday, Israeli Prime Minister Benjamin Netanyahu’s office issued a statement that said it supports the ceasefire with Iran but that the agreement doesn’t include the war with Hezbollah* in Lebanon.
The statement contradicted* an earlier announcement by Pakistan’s Prime Minister Shehbaz Sharif, who has acted as a mediator* in the conflict, that said the ceasefire covers “everywhere including Lebanon”.
WILL THIS MEAN LOWER PETROL PRICES?
The price of oil tumbled more than 15 per cent to less than US$90 a barrel when the stock market opened on Wednesday. Lower oil prices should bring some relief at the petrol pump as well as to the cost of goods and services more generally thanks to reduced manufacturing and transportation costs.
However, Saul Kavonic, MST Financial’s head of energy research, said it was unlikely oil production in the Middle East would restart until there was confidence in a lasting ceasefire, and that even if a peace deal between the US, Israel and Iran were reached, it could take months for production to start up again.
“A two week ceasefire would enable a release of some oil and LNG* tankers from the Strait of Hormuz to market, providing some market pressure relief in May,” he said.
While fuel prices would drop quite a bit, Mr Kavonic said it might take years to return to pre-war prices again.
“The oil market would return to a $80 a barrel world rather than $60 a barrel world even in the more bearish* scenarios from here,” he said.
WILL TOLLS BE CHARGED AT THE STRAIT OF HORMUZ?
AP has reported that Iran will be allowed to charge fees, or tolls, to ships travelling through the Strait of Hormuz throughout the ceasefire period.
The funds raised will reportedly be shared with neighbouring country Oman, which controls the strait’s southern shore. Iran claims it will use its share of the money on reconstruction.
President Trump did not refer to any sort of toll system in his ceasefire announcement, merely saying that there would be a “COMPLETE, IMMEDIATE and SAFE OPENING” of the strait.
POLL
GLOSSARY
- ceasefire: a temporary pause in fighting
- Strait of Hormuz: a waterway between the Persian Gulf and The Gulf of Oman, directly south of Iran, that is a crucial shipping route for oil tankers
- international law: a set of rules that seek to protect civilians, as set out in the Geneva Conventions of 1949. These laws have been agreed upon by 196 countries and ban torture and attacking civilians. They also require treating detainees humanely and limiting the impact of warfare on women and children as much as possible
- infrastructure: buildings and structures used for the running of society, such as roads, power stations and public transport
- contention: disagreement
- consummated: completed
- Hezbollah: a Shiite Muslim political and militant group based in Lebanon. Hezbollah is an Iran-backed proxy that holds significant influence in the country. Hezbollah dragged Lebanon into the war after it fired rockets into Israel to avenge the death of Iranian Supreme Leader, Ayatollah Ali Khamenei at the start of the conflict
- contradicted: went directly against
- mediator: an impartial person that helps two fighting parties come to an agreement
- LNG: Liquefied Natural Gas
- bearish: a period of falling share prices
EXTRA READING
Why petrol prices are soaring
Are we running out of petrol?
Middle East: What is happening?
QUICK QUIZ
1. Roughly how long has war been raging across the Middle East?
2. Who has been acting as mediator in the ceasefire negotiations between the US and Iran?
3. How does the ceasefire agreement relate to war in Lebanon?
4. In what way will the ceasefire affect the movement of oil tankers through the Strait of Hormuz?
5. How did news of the ceasefire affect the price of oil on Wednesday morning?
LISTEN TO THIS STORY
CLASSROOM ACTIVITIES
1. Why is the Strait important?
Do you know why the Strait of Hormuz is so important for us? Use information from the story and your own knowledge to write an explanation that would help younger kids understand this. You can use drawings or diagrams, too.
Time: Spend at least 30 minutes on this activity
Curriculum Links: English, History, Economics
2. Extension
If you were part of the team that would advise both sides about the best way to stop this conflict, what advice would you give the Iranians and the Americans? Write a speech that you would make to give this advice. Remember that you need to be convincing!
Time: Spend at least 20 minutes on this activity
Curriculum Links: English, Civics and Citizenship
VCOP ACTIVITY
Read this!
A headline on an article – or a title on your text – should capture the attention of the audience, telling them to read this now. So choosing the perfect words for a headline or title is very important.
Create three new headlines for the events that took place in this article. Remember, what you write and how you write it will set the pace for the whole text, so make sure it matches.
Read out your headlines to a partner and discuss what the article will be about based on the headline you created. Discuss the tone and mood you set in just your few, short words. Does it do the article justice? Will it capture the audience’s attention the way you hoped? Would you want to read more?
Consider how a headline or title is similar to using short, sharp sentences throughout your text. They can be just as important as complex ones. Go through the last text you wrote and highlight any short, sharp sentences that capture the audience.