Iran–US Ceasefire Declared; Hormuz Normalization to Ease Saudi Oil Export Crisis

A ceasefire between the United States and Iran was declared on May 29, 2026, ending the U.S. blockade of Iranian ports that had been in effect since April 13. The agreement included Iranian commitments to reopen the Strait of Hormuz — which had been closed to commercial shipping since February 28 — as part of broader nuclear talks. For Saudi Arabia, the ceasefire represents the most significant economic relief since the Hormuz crisis began: the Kingdom's oil production has been suppressed to approximately 6.77 million bpd versus its quota of 10.291 million bpd, costing an estimated SAR 125.7B ($33.5B) in Q1 2026 alone. Saudi Arabia's Eastern Province oil fields had been forced to operate at roughly two-thirds of capacity with no viable eastern export route. The White House Deputy Chief of Staff indicated Iran had made significant concessions including agreement in principle to Hormuz normalization. Saudi officials did not comment publicly but were reported to have received private briefings from Washington ahead of the announcement.