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- Stocks popped as Iran announced the Strait of Hormuz was “completely open” to commercial ships.
- The news removed a major overhang for investors, who have feared prolonged supply disruptions.
- Oil prices also tumbled, with Brent and WTI dropping 10%.
US stocks surged on Friday, adding to records after Iran said the Strait of Hormuz was “completely open” following a ceasefire with Israel and Lebanon.
Oil prices plunged alongside the rally in equities, with Brent crude down 10% to $89.48 and WTI falling 11% to $84.06.
The re-opening of the Strait, a critical passage for oil, was announced by Iran’s Foreign Minister in a post on X Friday morning. The news has removed one of the market’s most pervasive overhangs, with stocks being dragged lower for most of March due to fears of prolonged supply disruptions in the Middle East.
“In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran,” Foreign Minister Seyed Abbas Araghchi wrote.
Trump followed up with his own update in a post on Truth Social.
Major indexes surged, with the Dow advancing 500 points and the S&P 500 on track to notch a 12-day winning streak.
Here’s where US indexes stood shortly after the 9:30 a.m. ET opening bell on Friday:
- S&P 500: 7,093.38, up 0.74%
- Dow Jones Industrial Average: 49,175.73, up 1.31% (+636.79 points)
- Nasdaq composite: 24,325.544, up 0.93%
Still, some think markets aren’t necessarily in the clear when it comes to the inflationary impact of the war. Joseph Bruseulas, the chief economist at RSM US, said it could take years to restore the lost oil supply from energy infrastructure that was destroyed in the Middle East amid the conflict.
“Oil prices will ease as will gasoline prices. However do not expect a return to pre war prices,” he said in a post on X.
Investors, though, have proven eager to jump back into risk assets since the ceasefire with Iran took effect. Markets are feeling more confident that the conflict in the Middle East will soon draw to an end, particularly as President Donald Trump has continued to reassure investors about progress on a peace deal.
Speaking at an event in Las Vegas on Thursday, Trump said that he believed that the conflict with Iran was “going along swimmingly,” and that the war “should be ending pretty soon.”
Much of the market’s gains have been driven by investors returning to tech stocks, which have been beaten down amid AI fears and the broader Iran-fueled sell-off. The iShares Expanded Tech-Software Sector ETF, which tumbled into a bear market in early 2026, is up 13% since last Friday.
“The stock market’s Iran-driven correction is likely over now that stocks have made new highs,” Paul Stanley, the CIO of Granite Bay Wealth Management, wrote in a note. “While corrections can involve a retest of the low, we would view any retests as a buying opportunity for long-term investors.”
