The Strait of Hormuz is set to reopen after the US and Iran reached a peace deal.
Speaking on X, Pakistani Prime Minister Shehbaz Sharif, who acted as a mediator throughout the conflict, said the deal had been reached after extensive talks.
“Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” Sharif said.
The signing ceremony is set to take place in Switzerland this Friday.
Donald Trump also welcomed the news on Truth Social.
“Congratulations to all! I hereby fully authorise the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade,” Trump wrote.
Prime Minister Anthony Albanese and Foreign Minister Penny Wong welcomed the news, but were somewhat apprehensive.
“While full recovery will take time, restoring this vital trade corridor is essential to easing pressure on energy prices and economies, including in our region,” the joint statement read.
“We will continue to do all we can to shield Australians from the worst impacts of this conflict.”
Both urged all parties “to use this opportunity to pursue a durable and lasting peace through dialogue and diplomacy”.
“Iran must address longstanding concerns about its nuclear program and the threat it poses to international security,” the statement read.
“We commend the efforts to date of Pakistan, Qatar, Saudi Arabia, Turkiye and other mediating countries.”
For travellers who secured backup bookings on alternative carriers during the disruption, the deal raises an immediate practical question: what now?
Cheaper fares unlikely
Mark Trim, managing director of Complex Travel Group, says many of those fares will be easier to cancel than travellers expect.
“Because Singapore Airlines and Cathay Pacific restricted lower booking classes during the disruption, only top-tier inventory remained available,” Trim said. “Top-tier inventory is naturally refundable, typically with a minor or nil penalty. This means the backup fares that travellers paid a premium for during the disruption are, in many cases, the easiest fares to walk away from.”
He also notes there is no minimum notice requirement for cancellation on these fares – unlike hotel and cruise bookings – meaning travellers can hold a backup until a few days before departure before making a call.
Those hoping the deal will unlock cheap fares, however, may be disappointed.
“Airlines that have spent months maximising fares have no commercial incentive to suddenly discount at the final hour,” Trim said. “The more plausible outcome is that released seats flow into the frequent-flyer and upgrade pool rather than appearing as bargain fares.”
Trim’s advice is straightforward: “If your original travel plans are confirmed and your backup fare is refundable, cancel the backup and recover those funds. Holding both bookings serves little purpose once regional stability is restored.”
On Smartraveller, much of the Middle East including stop-off destinations such as Qatar and Dubai are still marked as red.
ATIA, alongside a number of senior travel professionals, has been campaigning for the Australian government to change the ‘rigid’ Level 4 (Do Not Travel) travel advice on transit through the Middle East to Level 3.
ATIA rallies members with Campaign for Commonsense on travel advice through Middle East
The current safety rating means that, although travellers are flying through the Middle East, it opens them up to an unintended travel insurance void.
According to reports, some airlines such as Emirates are working to develop their own insurance in a bid to lure passengers back.
