Iran announced the Strait of Hormuz is now “completely open” for commercial traffic, a major step toward ending a war with the US and Israel that’s sent energy prices surging and hit the global economy.

Oil prices plunged.

“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,” Foreign Minister Abbas Araghchi said on X. Ships can move on the “coordinated route as already announced” by Iranian authorities.

President Donald Trump hailed the move in a social media post Friday, saying the strait is “FULLY OPEN AND READY FOR FULL PASSAGE.”

Trump announced a 10-day ceasefire between Lebanon and Israel on Thursday evening, a move that eased tensions with Iran. Israel is waging a war against Hezbollah, a Lebanese-based militant group that’s one of Iran’s closest allies, and Tehran insisted on a truce in that conflict for a peace deal to be struck with the US.

The Lebanon truce held into Friday afternoon.

Oil’s decline deepened after Araghchi’s post. Brent crude dropped more than 11% to around $88 a barrel as of 2:10 p.m. in London, paring its gain since the Iran conflict began in late February to 21%.

Trump on Thursday said a deal to end hostilities with Iran was close. The two have been negotiating via Pakistan this week amid a ceasefire between them, which is due to end April 21.

The reopening of Hormuz was the most pressing issue for Trump, with the jump in fuel prices, including in the U.S., hurting him politically and frustrating American allies in Asia and Europe.

Israel and the U.S. triggered the war by bombarding Iran on Feb. 28, saying they needed to destroy its nuclear and missile programs. Israel has previously signaled it would follow any US decision on extending the truce with Iran or agreeing a peace deal.

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