S&P 500 Surpasses 7,100 Amid Market Rally Following Strait of Hormuz Reopening
U.S. stock markets reached new highs as Iran announced the reopening of the Strait of Hormuz, leading to a significant drop in oil prices.
U.S. stock markets achieved record highs on Friday after Iran declared the Strait of Hormuz "completely open" for commercial vessels during the ongoing ceasefire in Lebanon. The S&P 500 surpassed 7,100 points for the first time, while the Nasdaq Composite extended its winning streak to 13 days, the longest since 1992.
Oil prices responded sharply to the announcement. Brent crude fell 9% to $90.56 per barrel, and West Texas Intermediate crude dropped 11% to $84.56.
Iranian Foreign Minister Seyed Abbas Araghchi stated on X: "In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire."
Despite the reopening, President Donald Trump indicated that the U.S. naval blockade targeting Iranian ports would remain until negotiations with Iran are concluded.
The Strait of Hormuz is a critical passage for global oil shipments, and its closure had previously led to significant disruptions in energy markets. The reopening has alleviated some concerns, contributing to the surge in stock markets and the decline in oil prices.
