Global Markets Rally as Strait of Hormuz Reopens Amid Middle East Ceasefire

U.S. equity markets posted significant gains this week, led by a 5.9% surge in the Nasdaq 100, as geopolitical tensions eased in the Middle East. The rally followed a ceasefire between Israel and Lebanon and a subsequent declaration by Iran's foreign minister that the Strait of Hormuz is now "completely open" for commercial traffic. The reopening of the waterway is a critical development for the global economy. Since late February, the near-total closure of the strait—which typically handles approximately 20% of the world's crude oil supply—has caused the largest oil disruption in history, weighing heavily on energy-dependent sectors. The news triggered a sharp correction in energy markets, with oil prices falling more than 10%. This shift fueled broad bullishness across most sectors, though Energy and Utilities lagged. Despite the optimism, the recovery is fragile; current transit volumes are only 23% of normal, with just 14 ships passing through in the last 24 hours. Investors remain cautious as the U.S. blockade of Iranian oil vessels persists and concerns over naval mines linger. While the market is currently pricing in optimism, the volatility of the Iranian conflict continues to overshadow the start of the Q1 earnings season, which has seen strong bank results but a bearish reaction to Netflix's surprise.