The Strait of Hormuz appeared on Wednesday, 6 May to be on the verge of reopening after both the United States and Iran announced they were lifting blockades on the waterway through which approximately 20 per cent of global oil and gas supply passes. The development follows weeks of escalating military and economic pressure that has rattled global energy markets.

Key Developments

US President Donald Trump said on Tuesday evening that he was pausing the US blockade to allow space for a potential agreement with Iran. Hours later, Iran's Islamic Revolutionary Guard Corps (IRGC) announced it would allow ships to pass through the Strait, claiming that US threats had been "neutralised."

Trump, however, also warned on Wednesday morning that he would resume bombing at "a much higher level and intensity than it was before" if Iran did not lift its blockade. In a post on Truth Social, Trump wrote that "assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption", the Strait would be open to all, including Iran, and Operation Epic Fury would end.

Iran's Position and New Corridor Mechanism

Iranian Foreign Ministry Spokesperson Esmail Baghaei was quoted by ISNA news agency shortly after Trump's post as saying that the latest US proposals were under consideration and Iran would be "finalising its considerations" before conveying its response. Iranian state broadcaster PressTV reported that the IRGC said it was opening the Strait "now that threats from the US and the Israeli regime against Iran are subsiding."

PressTV, citing unnamed sources, also reported that Iran was "introducing a new mechanism allowing ships to pass through designated corridors in the Strait of Hormuz." Under the scheme, ships would reportedly email the Persian Gulf Strait Authority, which would grant permission and designate the route. The arrangement could prove contentious — the US may not accept that level of Iranian control over the waterway, even though Trump had reportedly once offered to share control of it with Iran.

Background: How the Blockades Began

Iran blocked the Strait on 28 February after Israel and the US launched a bombing campaign against it. The US subsequently imposed its own blockade of Iranian ports on 13 April after negotiations between the two sides collapsed. Trump has since claimed that Iran's navy and air force have been "decimated" by US strikes, though Iran has continued to fire missiles at US ships and at the United Arab Emirates and Oman in recent days — attacks on neighbours that threatened to raise tensions further.

China's Role and Diplomatic Pressure

China has emerged as a significant diplomatic actor in the standoff. Iranian Foreign Minister Abbas Araghchi and Chinese Foreign Minister Wang Yi met in Beijing on Wednesday, with China conveying its support for a negotiated settlement. China's state news agency Xinhua reported that President Xi Jinping told Araghchi that "sticking to negotiations is particularly important" and that China was for a "comprehensive cessation of hostilities" without delay.

Trump's trip to Beijing for a summit with Xi Jinping is reportedly barely a week away, adding further urgency to resolving the crisis before that meeting.

Domestic Pressure on Trump

Trump is also facing significant domestic pressure to end the conflict, driven by a sharp rise in petrol and diesel prices that has cascaded into broader consumer price increases. With midterm elections for control of Congress looming in approximately six months, the economic fallout from the prolonged Hormuz standoff has become a political liability. Iran's own capacity to sustain the conflict is also described as tenuous, with its military significantly degraded, according to US claims.

Whether the announced reopening holds will depend on whether a formal agreement is finalised — a process that, by Trump's own admission, remains uncertain.