Global stocks rally and oil falls as Iran opens Strait
Major stock indexes reached new highs while Brent crude fell over 11% to $87.94 after Iran opened the Strait of Hormuz. The move follows a regional ceasefire.
Global financial markets rallied on Friday following an announcement from Iran that the Strait of Hormuz has been reopened for commercial shipping. Foreign Minister Abbas Araqchi stated that the critical energy corridor would remain open during the ceasefire currently in effect for the conflict involving the United States[country:\"US\" }] and Israel. The move is reportedly in coordination with a ceasefire in Lebanon.
The news led to a sharp correction in energy prices, which had been bolstered by supply concerns. Brent Crude Oil futures fell 11.5% to $87.94 per barrel, while WT WTI CRUDE OIL dropped to $83.33 per barrel. Although prices remain above pre-war levels, they are significantly lower than the peaks seen in late March when Brent approached $120.
