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 the Strait of Hormuz [0:04] 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 Strait. [0:15] While the markets have rallied, there remains a lot of uncertainty tonight [0:19] over the status of this vital artery of global trade. [0:23] Well, Iran's reopened the Strait because of the truce hammered out in the war between Israel [0:29] and the Iranian-backed militia group Hezbollah. [0:32] However, Donald Trump insists the US blockade of Iranian ports will continue [0:36] 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 [0:49] 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. [1:02] Iran's ability to control the Strait of Hormuz is one of its most effective weapons. [1:08] The American president celebrated the reopening. [1:11] Posting on social media, [1:12] Iran has just announced that the Strait of Iran, as he called it, [1:16] is fully open and ready for full passage. Thank you. [1:20] Last night, he sounded very optimistic about progress towards a peace deal with Iran. [1:24] I will say the war on Iran is going along swimmingly. [1:28] We can do whatever we want. [1:33] And it should be ending pretty soon. [1:36] These ships may soon be on the move, [1:38] thanks to the ceasefire struck yesterday between Israel and Lebanon. [1:41] That was Iran's condition for reopening the Strait. [1:45] The Iranian foreign minister, Abbas Arachi, said, [1:48] In line with the ceasefire in Lebanon, [1:50] the passage for all commercial vessels through the Strait of Hormuz [1:53] 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 American naval blockade of the Strait remains in place, [2:13] stopping any ships that are carrying Iranian oil. [2:17] Donald Trump says that will stay in effect [2:19] until a final peace deal with Iran has been signed. [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. [2:35] 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 [2:46] greeted 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 here [2:57] could disrupt American talks with Iran. [2:59] And that's why Donald Trump says he has banned Israel [3:02] 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 [3:15] that all of this can be concluded in a couple of days [3:17] and that Iran will agree to many of America's toughest conditions. [3:21] But it would be astonishing, quite frankly, [3:23] if Iran were to agree to halt all nuclear activity [3:26] and hand over all of its nuclear material. [3:29] And officials inside that country [3:31] are saying something quite different from Donald Trump. [3:33] They're saying that their stockpiles of nuclear material [3:35] are not going anywhere [3:36] and most certainly not being transferred to the United States. [3:39] They do say both sides are nearing agreement [3:43] on a document that would set a framework for negotiations. [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] Darshini David is here with me. [4:05] Ships don't really seem to be moving through the strait, [4:08] yet the price of oil has dropped. [4:09] Indeed, you've got to wonder if they were just [4:11] in sort of a pre-weekend party mode on trading floors. [4:14] I think this really underscores how vital [4:16] that narrow shipping channel that many people [4:18] haven't heard of just a couple of months ago [4:20] 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 [4:27] and therefore we'd seen a little bit of relief [4:28] coming through at the petrol pump. [4:30] But what we saw today was on a different scale altogether. [4:33] We saw gas costs dropping to their lowest [4:37] 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, [4:44] because those concerns about jet fuel availability [4:47] easing somewhat. [4:49] But has euphoria gone a bit too far? [4:51] Because when you looked at that, Clive, [4:52] you could see there that actually prices remain [4:54] considerably above the $70 per barrel or so [4:57] we saw prior to the war. [4:58] And there's a couple of reasons for that. [5:00] First, as we've been discussing here, [5:02] the fact that in reality, [5:03] we're seeing very little movement. [5:05] There is great caution amongst the shipping operators [5:08] we've spoken to. [5:09] And this is a limited reopening, isn't it? [5:11] Which may only allow for those who are already stranded [5:14] to move ahead. [5:15] And crucially as well, [5:16] that damage to infrastructure [5:17] means that production of energy in the region [5:20] could take years to come back on board. [5:22] So even if we do see a swift resolution to this war, [5:26] we are likely to see some more relief. [5:28] But if you look at the impact over the last seven weeks, [5:31] 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. [5:40] Darshini, thank you. [5:41] Darshini David, our Deputy Economics Editor there. [5:44] Now, while the current ceasefire between the US and Iran [5:47] still appears to be holding, [5:49] it's due to run out next week, [5:50] with both sides still far apart [5:52] on agreeing the conditions for a lasting deal. [5:55] Lise Doucette, our Chief International Correspondent, [5:58] is in Tehran and reporting on condition [6:00] that none of her material is used on the BBC's Persian service. [6:04] These restrictions apply to all international media organisations [6:07] operating inside the country. [6:10] The state's new show of force. [6:15] Women loyalists with rocket launchers [6:17] and their own guns. [6:19] They're called the Devoted Daughters. [6:21] Their march today broadcasts live for hours on state TV [6:27] and saluted by military chiefs. [6:32] This is the order born of this war. [6:35] It's more militarised, more hardline, [6:38] and it believes it has the upper hand now [6:40] against their arch enemy in Washington, [6:44] their opponents at home. [6:48] But this war has inflicted heavy losses [6:51] on Iran's military capabilities, [6:54] even its critical infrastructure. [6:56] This was its biggest bridge, [7:01] a major junction connecting Tehran to other cities. [7:05] This U.S. strike shocked Iranians, [7:07] whatever their political views. [7:09] Israel and the United States insist this bridge [7:11] could have been used to transport troops, [7:14] military equipment, [7:15] so they say it's a military target [7:17] and it could have been used for those purposes. [7:22] 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. [7:30] We built this bridge to help our people and the environment. [7:35] Hitting the bridge was nothing but a war crime. [7:37] As the fragile ceasefire holds, [7:42] the clean-up continues, [7:44] 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. [7:53] Why do you think they attacked here? [7:56] I don't know. [7:57] This area is here for normal life. [8:00] Women, children, and normal. [8:02] Here, not the army. [8:04] What happened here? [8:06] Why do you think this happened? [8:08] It's one month ago. [8:10] Trump is sold for the help for Iranian people. [8:15] This is now this gift, yeah? [8:18] A special gift. [8:20] The same message is scribbled on a wall across the street. [8:24] Trump's help has arrived. [8:26] Death to America. [8:30] These are dark, uncertain times. [8:32] Despite their bravado, [8:34] Iran's leaders need a deal which lifts sanctions. [8:36] 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 [8:52] to President Trump's terms, [8:54] whose people are divided over what direction Iran should take. [8:59] Lise Doucette, BBC News, Tehran.