Trump notifies Congress that US-Iran hostilities 'have terminated' while Strait of Hormuz closure continues to generate global trade and credit disruption

US President Donald Trump sent a letter to congressional leaders on 2 May 2026 stating that hostilities between the United States and Iran 'have terminated,' a notification that carries significant legal and constitutional weight under the War Powers Resolution — a US federal statute that requires presidential notification to Congress within 48 hours of committing armed forces and limits unilateral military engagement to 60 days without congressional authorisation. The declaration does not constitute a formal peace treaty or end the economic consequences of the conflict: the Strait of Hormuz, through which a significant share of global oil and LNG (liquefied natural gas) shipments pass, remains subject to disruption from the mines and naval activity associated with the conflict, with some corporate executives publicly estimating that full clearance may take close to a year. The ongoing closure is driving oil price volatility, supply chain disruptions across pharmaceuticals, jet fuel, and helium, and — as reported across financial markets — a silent tightening of credit standards by US banks. For London commercial lawyers, the international dimension runs across multiple practice areas: sanctions work (the US, UK, and EU all imposed Iran-related sanctions during the conflict whose wind-down requires careful sequencing), energy infrastructure advisory (the IMEC corridor and alternative supply routes have attracted renewed European political attention), and force majeure disputes in commodities contracts referencing Hormuz passage.

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