Oil prices dropped sharply Friday after Iran announced full reopening of the Strait of Hormuz during the ceasefire, triggering immediate rallies across global stock markets.
Iran Foreign Minister Abbas Araghchi declared on X that commercial passage through the Strait of Hormuz would remain completely open for the remaining duration of ceasefire.
The Strait of Hormuz, a critical waterway carrying one-fifth of global crude oil, had faced disruption since the US-Israeli offensive began earlier this month.
Benchmark Brent crude and US WTI contracts both fell below $90 per barrel, marking a decline of more than ten percent in trading.
Wall Street indices surged at the opening bell, with the S&P 500 and Nasdaq Composite extending record highs achieved during Thursday’s trading session.
European markets also advanced, with Frankfurt and Paris gaining two percent, while Asian indices closed lower, including Tokyo and Taiwan’s TAIEX after recent record highs.
Analysts noted the S&P 500’s rebound of nearly twelve percent in two weeks, reinforcing momentum and driving investors to re-establish positions despite earlier losses.
