Main developments
Iran’s foreign minister said the Strait of Hormuz was “completely open” to commercial shipping for the duration of the ceasefire in Lebanon.
The Brent crude international oil benchmark dropped 13 per cent to below $90 per barrel after Abbas Araghchi’s statement. US stocks rose 1.3 per cent.
Iran peace talks would “probably” resume this weekend, Donald Trump said.
Shipping still faced big uncertainties with any reopening of the strait likely to be “slow and partial”, executives and analysts cautioned.
Ships must obtain permission from the Islamic Revolutionary Guard Corps to pass through the strait, while military vessels remain prohibited, according to Iranian state television.
Trump said the American naval blockade of Iranian ports would remain in effect.
The US president added America had “prohibited” Israel from further strikes on Lebanon, declaring “enough is enough”.
A 10-day ceasefire between Lebanese group Hizbollah and Israel came into effect on Friday.
Iran says its ‘entire focus’ is a ‘complete’ end to the war
Iran’s “entire focus” is on a total end to the war, the country’s foreign ministry spokesperson told state media.
Esmail Baghaei said there had been no conversations about extending the ceasefire and Iran was focused on creating “the necessary conditions for a complete end to the war”.
Donald Trump earlier on Friday said that peace talks would “probably” resume this weekend.
Saudi Arabia finance minister says economic situation remains ‘very fragile’
Saudi Arabia’s finance minister Mohammed Al-Jadaan said the economic situation remained “very fragile” — and would remain so until there was a “serious, credible de-escalation” in hostilities.
“It’s a very fragile situation, fluid,” Al-Jadaan said at a press conference at the IMF on Friday. He added that while he welcomed the “de-escalation” and the market reaction to it, the ceasefire will expire in a few days.
“We will wait and see. I think, the hope is that we will see a serious, serious, credible, de-escalation. And until that happens, I don’t think we are in the baseline scenario [for economic growth],” Al Jaddan said.
He added that it would also take “a bit of time” for oil-producing countries to increase production and that he did not think insurance companies or owners of tankers “would respond” until there is a more permanent cessation of hostilities.