Global oil prices dropped by 10% in a single day after Iran announced that the Strait of Hormuz has been fully reopened to commercial shipping.
According to Iranian authorities, the vital waterway will remain open for all commercial vessels during the ongoing ceasefire period. This move allows oil tankers from the Persian Gulf to resume transporting crude oil to global markets, improving supply conditions worldwide.
Following the announcement, US financial markets reacted strongly. The Dow Jones Industrial Average jumped by 1,020 points, while the S&P 500 rose by 1.3% and the Nasdaq Composite gained 1.5% in early Friday trading.
Analysts say the surge reflects growing confidence among investors that both the United States and Iran may avoid a major economic crisis. Since late March, US stock markets have climbed about 12%, driven by easing geopolitical tensions.
The Strait of Hormuz carries a significant portion of the world’s crude oil shipments. Its reopening is expected to stabilize global energy supply and reduce concerns over a prolonged fuel crisis.
