Oil Plummets 10%, Stocks Soar as Iran Opens Strait Amid Ceasefire
Markets reacted sharply after Iran said commercial passage would resume through the Strait of Hormuz for the remainder of the ceasefire. Oil prices plunged and US equities rallied on the news.
Oil Plummets 10% while Stocks Soar as Iran Opens Strait Amid Ceasefire captured trader sentiment. The announcement eased fears about Persian Gulf supply disruptions.
Oil market reaction
Brent crude fell about 10% to $89.20 per barrel. West Texas Intermediate dropped roughly 10.5% to $81.50 per barrel.
These levels marked the weakest oil prices in about five weeks. Both benchmarks still sit above pre-war reference levels of $73 and $67 per barrel.
Equity market gains
US stocks climbed on the relief rally. The Dow jumped 640 points, up about 1.2%.
The S&P 500 rose roughly 0.7%, and the Nasdaq gained about 1%. The two indexes had posted back-to-back record highs earlier in the week.
Short-term momentum
The S&P 500 has rallied more than 11% since its recent low on March 30. The Nasdaq extended a 12-day winning streak.
That streak is the longest for the Nasdaq since 2009. A further gain would mark its longest run since 1992.
Diplomatic developments
Iranian Foreign Minister Seyed Abbas Araghchi declared the Strait of Hormuz open for commercial vessels in a post on X. He tied the move to the ceasefire terms.
President Donald Trump said Israel and Lebanon agreed to a 10-day ceasefire. He also posted about the strait reopening on Truth Social.
Market implications
Opening the strait reduced immediate supply risks. Traders reacted quickly, driving oil lower and stocks higher.
Financial markets will watch for any changes to the ceasefire and shipping status. Filmogaz.com will follow updates and report further developments.
