STRAIT OF HORMUZ — Iran announced that the Strait of Hormuz has reopened to maritime traffic following a ceasefire deal in Lebanon. The waterway had been closed for 48 days after mines and other military blockades were put in place beginning February 28.

The Ports and Maritime Organization of the Islamic Republic of Iran announced a coordinated route covering about one third of the Strait of Hormuz. That route has been declared completely open. Hundreds of ships were stuck in the strait for weeks during the closure.

Insurance rates for passage through the strait have increased by 300% and will remain elevated for the foreseeable future. Insurers must determine what the United States and Iran have agreed regarding the toll that Iran has been collecting for passage through the waterway. The U.S. and Iran have not released details on how the IRGC will be defined under international sanctions laws.

The Islamic Revolutionary Guard Corps is designated as a state sponsor of terrorism. Under laws governing state sponsors of terrorism, contact with Iran by insurers or tankers carries a risk of fines, sanctions, and imprisonment of up to 20 years. If anyone dies while traversing the strait, a person could face life imprisonment under those laws.

There is a 60- to 90-day lag between changes in crude oil costs tied to an event such as the closure of the strait and increases in consumer goods prices. The strait had been blocked since February 28, when mines and other military obstacles were first put in place, and remained closed for a total of 48 days before Iran declared the coordinated route open.