Commercial shipping through the Strait of Hormuz resumed this week following the US-Iran peace agreement, ending a disruption to global oil supply routes that had contributed to a sustained spike in energy prices since the conflict began in early 2026.

The strait carries roughly 20 percent of the world’s oil and handles a significant share of global liquefied natural gas traffic. During the height of US-Iran tensions, tankers had been rerouting around the Cape of Good Hope — adding days to journeys and billions of dollars to shipping costs. Some carriers halted Gulf transits entirely after insurance rates made the route commercially unviable.

After the memorandum of understanding was signed by Vice President JD Vance on June 15, both sides confirmed the naval blockade was lifted and military patrols scaled back. The first commercial tankers to transit the strait since the ceasefire took effect passed through on Wednesday and Thursday without incident, according to shipping industry sources tracking vessel movements.

Oil prices fell more than five percent in the week following the deal announcement, though analysts caution that a full price normalisation could take longer than markets currently expect. The physical flow of crude from Gulf producers needs time to rebuild. Storage levels drawn down during the blockade period must be replenished, and some buyers have locked in alternative supply arrangements that will take months to unwind.

The International Energy Agency estimated the disruption cost importing countries a combined $280 billion in additional energy costs over the period of the closure. European and Asian nations, which rely more heavily on Gulf crude than the United States, were hit hardest by the extended rerouting.

Recovery will be gradual. Shipping companies that pulled insurance cover and crew from Gulf routes are rebuilding those arrangements. Earlier analyst warnings that the physical recovery could take months even after a deal appear to be correct in their timeline estimate.

The deal also calls for international nuclear inspectors to return to Iran within sixty days, with further talks on Iran’s 440-kilogram enriched uranium stockpile to follow. Whether those talks produce a durable agreement will determine whether the strait stays open on a long-term basis. The US Energy Information Administration will publish updated supply forecasts when the physical resumption is confirmed at scale.

For now, the reopening of Hormuz is the clearest sign that the ceasefire is holding in practical terms. The first convoy of tankers completing the passage without incident is a marker both sides needed.