(NEW YORK) — Stocks surged and oil prices plunged in early trading on Friday after a senior Iranian official declared the Strait of Hormuz “completely open” for commercial traffic for the duration of the 10-day ceasefire between Israel and Lebanon.
The Dow Jones Industrial Average climbed 1,005 points, or 2%, while the S&P 500 jumped 1.2%. The tech-heavy Nasdaq increased 1.5%.
In a post on X on Friday, Iranian Foreign Minister Seyed Abbas Araghchi said: “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.”
President Donald Trump appeared to confirm the reopening of the strait in a message posted on social media on Friday morning.
“IRAN HAS JUST ANNOUNCED THAT THE STRAIT OF IRAN IS FULLY OPEN AND READY FOR FULL PASSAGE,” Trump said.
West Texas Intermediate futures, the benchmark index for U.S. oil prices, plunged more than 10%, registering at about $83 a barrel. The reading marked the index’s lowest level since mid-March.
Even so, U.S. oil prices remain about 30% higher than pre-war levels.
The U.S.-Israeli war prompted Iran’s effective closure of the strait, a critical waterway that facilitates the transport of 20 million barrels of oil per day, or about one-fifth of the global supply.
The move set off the “most severe oil supply shock in history,” the International Energy Agency said in a report this week. Oil prices notched their largest one-month rise ever in March, the Paris-based group said.
Gasoline prices in the U.S. registered at $4.07 on average per gallon on Friday, standing more than 30% higher than before the war, AAA data showed.
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