Iran says Strait of Hormuz open

Iranian Foreign Minister Abbas Araqchi says the Strait of Hormuz is open following a ceasefire agreement in Lebanon, while US President Donald Trump says talks could take place this weekend and believes a deal to end the Iran war would come "soon".

Araqchi said in a post on X on Friday the strait was open for all commercial vessels for the remainder of the United States-brokered 10-day truce that was agreed on Thursday between Israel and Lebanon to halt fighting between Israeli forces and Iran-backed Hezbollah.

Shortly after Araqchi's statement, Trump posted on Truth Social: "IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR PASSAGE."

But statements from both sides left uncertainty over how quickly shipping could resume. Trump said a US blockade of ships sailing to Iranian ports - announced after talks with Tehran last weekend ended without agreement - would remain until "our transaction with Iran is 100% complete".

Iran responded sharply, with Foreign Ministry spokesperson Esmaeil Baghaei warning that Tehran would take "necessary reciprocal measures" if a maritime blockade continued.

Vessel traffic data showed a group of about 20 ships, including container ships, bulk carriers, and tankers, moving through the Gulf toward the Strait of Hormuz. It was unclear whether they would be stopped or allowed to pass.

It also was unclear how the two sides would address Iran's nuclear programme, which has been a key sticking point in talks so far.

Trump told Reuters the US would remove Iran's enriched uranium, but Baghaeitold state TV the material would not be transferred anywhere.

Separately, a senior Iranian official told Reuters that no agreement had been reached and serious negotiations were required to overcome differences between the two sides.

He said Tehran hoped a preliminary agreement could be reached in the coming days that could extend a ceasefire that is due to expire next week. That could buy more time for negotiations on lifting sanctions on Iran and securing compensation for war damages, the official said.

US-Israeli strikes on Iran began on February 28 this year, triggering Iranian attacks on Gulf neighbours and reigniting the Israel-Hezbollah conflict in Lebanon.

Thousands have been killed and the conflict effectively shut the Strait of Hormuz - through which a fifth of the world's oil and liquefied natural gas usually transits - threatening the worst oil shock in history.

OIL PRICES TUMBLE, STOCKS JUMP

Oil prices fell about 10%, and global stocks jumped on the news that marine traffic might flow through the strait again. 

Shipping companies cautiously welcomed Iran's announcement but said they would require clarifications, including about the risk of mines, before vessels move through the entry point to the Gulf.

The US Navy warned seafarers that the mine threat in parts of the waterway was not fully understood and said they should consider avoiding the area.

A senior Iranian official said ships could pass only under coordination with Iran's Islamic Revolutionary Guard Corps.

After a video conference on Friday, more than a dozen countries said they were willing to join an international mission to protect shipping in the strait when conditions permit, Britain said.

DIPLOMACY PROGRESS

Trump told Reuters there could probably be more talks this weekend. Some diplomats said that was unlikely given the logistics of gathering in the Pakistani capital Islamabad, where the talks are expected to take place.

Troops were deployed along routes into Islamabad on Friday, though roads remained open and the government had not ordered business closures, as it did ahead of the previous meeting.

A Pakistani source involved in mediation efforts said an upcoming meeting could result in an initial memorandum of understanding, followed by a comprehensive deal within 60 days.

"Both sides are agreeing in principle. And technical bits come later," said the source, who spoke on condition of anonymity.

A senior Iranian official told Reuters there had been an agreement on unfreezing billions of dollars in Iranian assets as part of the accord, without giving a timeline.

At last weekend's talks, the US proposed a 20-year suspension of all Iranian nuclear activity, while Iran suggested a halt of three to five years, according to people familiar with the proposals.

Iran has demanded the lifting of international sanctions, while Washington has pressed for any highly enriched uranium to be removed from Iran.

Two Iranian sources have said there were signs of a compromise that could remove part of the stockpile.

Trump told Reuters the US might not act quickly. "We're going to go in with Iran, at a nice leisurely pace, and go down and start excavating with big machinery... We'll bring it back to the United States," he said in a phone interview.

He mentioned "nuclear dust", a reference to the aftermath of bombing strikes by the US and Israel on Iran's nuclear installations in June last year.

Despite Trump's optimism, Iranian sources told Reuters that "gaps remained to be resolved" before a preliminary deal, while senior clerics struck a defiant tone during Friday prayers.

"Our people do not negotiate while being humiliated," cleric Ahmad Khatami said.

The US-backed ceasefire between Israel and Lebanon appeared to be largely holding on Friday, despite Lebanese Army reports of some Israeli violations. Paramedics said an Israeli drone strike killed one person in southern Lebanon.

The conflict was reignited on March 2 when Hezbollah opened fire on Israel in support of Tehran, prompting an Israeli offensive that authorities say has killed nearly 2300 people.

There was no immediate comment from the Israeli military on the reported ceasefire violations.