Iran declares strait of Hormuz open but few ships are passing through vital sea lane | BBC News

0:00 It doesn't seem as if commercial shipping is flowing freely once again through

0:03 the straight of Hormuz after Iran had earlier declared the waterway was open.

0:08 Shipping companies are still reportedly concerned about mines

0:12 and new rules Iran has imposed on using the straight.

0:16 While the markets have rallied, there remains a lot of uncertainty tonight over

0:20 the status of this vital artery of global trade.

0:24 Well, Iran's reopened the strait because of the truce hammered out

0:27 in the war between Israel and the Iranianbacked militia group Hezbollah.

0:32 However, Donald Trump insists the US blockade of Iranian ports will continue

0:37 until a permanent peace deal is agreed in America's own war with Iran.

0:41 Sarah Smith has our top story tonight from Washington.

0:46 Opening up this vital waterway was a top priority for Donald Trump.

0:50 As commercial tankers carrying oil and gas have been stuck for six weeks,

0:54 prices have risen around the world.

0:59 Iranian missiles could strike tankers and other ships trying to leave the Gulf.

1:03 Iran's ability to control the Strait of Hormuz

1:05 is one of its most effective weapons.

1:08 The American president celebrated the reopening, posting on social media,

1:12 "Iran has just announced that the Strait of Iran,

1:15 as he called it, is fully open and ready for full passage.

1:19 Thank you."

1:20 Last night, he sounded very optimistic about

1:22 progress towards a peace deal with Iran.

1:25 I will say the war in Iran is going along swimmingly.

1:29 We can do whatever we want and it should be it should be ending pretty soon.

1:36 These ships may soon be on the move thanks

1:38 to the ceasefire struck yesterday between Israel and Lebanon.

1:42 That was Iran's condition for reopening the strait.

1:45 The Iranian foreign minister Abbasarachi said

1:48 in line with the ceasefire in Lebanon,

1:50 the passage for all commercial vessels through the straight of Hormuz

1:54 is declared completely open for the remaining period of ceasefire.

1:57 During that time, vessels must use these shipping lanes

2:01 in what Iran calls a coordinated route close to its shore,

2:05 potentially safe from mines further to the south.

2:07 The US has announced a formal blockade of Iranian ports.

2:10 The American naval blockade of the straight remains in place,

2:14 stopping any ships that are carrying Iranian oil.

2:17 Donald Trump says that will stay in effect until

2:19 a final peace deal with Iran has been signed.

2:21 If you do not comply with this blockade, we will use force weapon.

2:25 Listening to President Trump,

2:26 it sounds as though a deal with Iran is all but concluded.

2:29 They've agreed to almost everything.

2:31 He claims Iran is ready to hand over all its nuclear material.

2:36 But officials inside Iran say significant differences remain,

2:39 including on nuclear issues, and serious talks are still required.

2:44 Joy in the streets of Lebanon greeted

2:46 the 10-day pause in hostilities with Israel,

2:49 a conflict that's both separate from and connected to the war in Iran.

2:54 Any disruption in the fragile ceasefire

2:56 here could disrupt American talks with Iran.

2:59 And that's why Donald Trump says he has

3:01 banned Israel from resuming the bombing of Lebanon.

3:07 Now, I have to say Donald Trump's enthusiasm

3:09 that a deal with Iran is within sight is very one-sided.

3:13 We have him saying he thinks that all of this can be concluded

3:16 in a couple of days and Iran

3:18 will agree to many of America's toughest conditions.

3:21 But it would be astonishing quite frankly if Iran were to agree

3:25 to halt all nuclear activity and hand over all of its nuclear material.

3:29 And officials inside that country are

3:31 saying something quite different from Donald Trump.

3:33 They're saying that their stockpiles of nuclear material are not going

3:36 anywhere and most certainly not being transferred to the United States.

3:40 They do say both sides are nearing agreement

3:43 on a document that would set a framework for negotiation.

3:46 So that's a starting point, not an ending point.

3:49 And nobody in Iran seems to think that this process

3:51 can go anywhere near as quickly as Donald Trump is suggesting.

3:55 Sarah, thank you.

3:56 Sarah Smith, our North American editor there in Washington.

4:01 So, what have the markets made of all this?

4:03 Darini David is here with me.

4:05 Um, ships don't really seem to be moving through the straight yet.

4:08 The price of oil has dropped.

4:10 Indeed, you've got to wonder if they were just

4:11 in a sort of a pre-week party mode on trading floors.

4:14 I think this really underscores how vital

4:16 that narrow shipping channel that many people hadn't

4:18 heard of just a couple of months ago is to all of our economic prosperity,

4:22 our bills, our ability to travel.

4:24 Now, energy prices had been inching lower in recent days and therefore

4:27 we'd seen a little bit of relief coming through at the petrol pump,

4:30 but what we saw today was on a different scale altogether.

4:34 We saw gas costs dropping to their lowest uh since the conflict began.

4:38 You can see there Brent crude prices finishing almost 10% down.

4:43 shares were up particularly those of airlines because

4:44 there's concerns about jet fuel availability um easing

4:48 somewhat but has euphoria gone a bit too

4:51 far because you looked at that Clyde you could

4:53 see there that actually prices remain considerably above

4:55 the $70 per barrel or so we saw prior to the war and there's a couple of reasons

4:59 for that first as we've been discussing here

5:02 the fact that in reality we're seeing very

5:04 little movement that there is great caution amongst

5:07 the shipping operators we've spoken to and this is

5:10 a limited reopening isn't it which may only allow

5:12 for those who are already stranded uh

5:14 to move ahead and crucially as well that damage

5:17 to infrastructure means that production of energy in the region

5:20 could take years to come back on board.

5:23 So even if we do see a swift resolution

5:25 to this war we are likely to see some more relief

5:28 but if you look at the impact over the last seven

5:31 weeks that's going to take time to move through supply chains.

5:34 There will be a hit to prices and to growth

5:36 the economic scars could well outlive the hostilities.

5:40 All right, Darini, thank you.

5:41 Darini David, our deputy economics editor there.

5:44 Now, while the current ceasefire between the US

5:46 and Iran still appears to be holding,

5:49 it's due to run out next week with both sides

5:51 still far apart on agreeing the conditions for a lasting deal.

5:55 Lee Ducet, our chief international correspondent,

5:58 is in Thran and reporting on condition that none

6:01 of her material is used on the BBC's Persian service.

6:04 These restrictions apply to all international

6:06 media organizations operating inside the country.

6:12 The states new show of force.

6:15 Women loyalists with rocket launchers and their own guns.

6:19 They're called the devoted daughters.

6:23 Their march today broadcast live for hours

6:26 on state TV and saluted by military chiefs.

6:32 This is the order born of this war.

6:35 It's more militarized, more hardline, and it believes it has the upper

6:40 hand now against their arch enemy in Washington, their opponents at home.

6:48 But this war has inflicted heavy losses on Iran's military capabilities,

6:54 even its critical infrastructure.

6:59 This was its biggest bridge, a major junction connecting Thrron to other cities.

7:05 This US strike shocked Iranians, whatever their political views.

7:09 Israel in the United States insists this bridge

7:12 could have been used to transport troops, military equipment.

7:15 So they say it's a military target

7:17 and it could have been used for those purposes.

7:23 Look at this bridge now.

7:24 Do you see any military equipment there?

7:27 The bridge was not even finished when it was attacked.

7:31 We built this bridge to help our people and the environment.

7:35 Hitting the bridge was nothing but a war crime.

7:39 As the fragile ceasefire holds,

7:42 the cleanup continues and Iranians count the cost of their enmity with America.

7:49 It's not clear what the target was here.

7:51 Its impact was immense.

7:54 Why do you think they attacked here?

7:56 I don't know this all is here for the normal

7:59 life woman children and normal here not the army

8:05 what happened here why do you think this happened

8:09 this one one months ago this Trump sold for the the help

8:13 for Iranian people this is now this gift yeah a special gift

8:20 the same message is scribbled on a wall across the street's Help has arrived.

8:26 Death to America.

8:30 These are dark, uncertain times.

8:32 Despite their bravado, Iran's leaders need a deal which lifts sanctions.

8:37 Financial woes sparked the nationwide protests in January,

8:41 which were crushed with lethal force.

8:44 The economic crisis is even deeper now.

8:49 But this is a nation whose leaders won't capitulate to President Trump's terms,

8:54 whose people are divided over what direction Iran should take.

8:59 Lee Duset, BBC News, Thrron.