NEW YORK (AP) – Oil prices fell more than 10% Friday, with Wall Street rallying toward oil prices. another record rear Iran announces Strait of Hormuz is fully open and oil tankers that transport crude oil from the Persian Gulf to customers around the world.
The S&P 500 rose 1% as U.S. stocks surged toward the end of three weeks of strong gains, the index’s longest streak of gains since Halloween. As of 10 a.m. ET, the Dow Jones Industrial Average was up 722 points, or 1.5%, and the Nasdaq Composite was up 1.1%.
Stocks have risen 12% since the crash. Bottom in late March The hope is that the US and Iran can avoid the worst-case scenario for the global economy. their war. resumption of Strait of Hormuzmay be temporary, but it is the clearest signal of optimism yet. President Donald Trump In a speech late Thursday, he said this is how the war turned out. “It should be over soon.”
A ceasefire appears to be holding in Lebanon, with the price of a barrel of benchmark U.S. crude oil plummeting shortly after Iranian Foreign Minister Abbas Araghchi posted on X that all commercial shipping in the strait was “declared completely open.” He said it would remain open for the remainder of the ceasefire. U.S. crude oil fell 10.2% to $81.88.
Brent crude, the international standard crude, fell 10.3% to $89.09. Indeed, it is still above the pre-war level of $70, indicating that a certain degree of caution still remains in financial markets.
Several times since the war began, optimism on wall street shook quickly I doubt the possibility of an end to the fighting. The result is vicious and sudden price fluctuations in everything from stocks to bonds to oil.
Minutes after Iran’s foreign minister announced the reopening of the Strait of Hormuz, President Trump said on his social media networks on Friday that the US Navy’s blockade of Iran would “continue in its entirety” until the two countries reach an agreement on war. But he also said, in all caps, that “we should move very quickly in that most of the issues have already been negotiated.”
As oil prices eased, companies that pay hefty fuel bills soared, posting the biggest gains on Wall Street.
United Airlines, for example, soared 9.8%. The head of the International Energy Agency said Thursday that Europe has “probably about six weeks” of jet fuel left.
Fuel-guzzling cruise ship operators also pumped higher steam. Norwegian Cruise Line rose 9.3%, while Royal Caribbean Group rose 9.3%.
A strong start to the earnings season for major U.S. companies also helped support U.S. stock markets, with several more financial companies on Friday joining the list of companies that will deliver bigger profits than analysts expected in early 2026.
State Street rose 2.9% and Fifth Third Bancorp rose 1.4% after both companies reported better-than-expected results for the latest quarter.
These helped offset Netflix’s 9.2% decline, even though it also delivered better-than-expected profits. The company did not raise its full-year sales growth forecast, but analysts said this may have disappointed some investors. it also said reed hastingsThe streaming company’s co-founder and chairman is step down from the board of directors The number of directors will be determined in June, when their terms of office expire.
In overseas stock markets, European stock indexes soared following Iran’s announcement regarding the Strait of Hormuz. France’s CAC40 rose 2% and Germany’s DAX rose 2.2%.
Indices were weak in Asia, which closed the day before the announcement. Japan’s Nikkei Stock Average fell 1.8%, and Hong Kong’s Hang Seng Stock Average fell 0.9%, the two biggest declines.
In the bond market, US Treasury yields fell sharply as falling oil prices eased inflationary pressures. The yield on the 10-year U.S. Treasury note fell to 4.24% from 4.32% late Thursday.
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AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
