US Markets Hit Record Highs as Iran Confirms Strait of Hormuz Remains Open

US equity markets surged on Friday, with the S&P 500 and Nasdaq Composite both closing at record levels. The rally was sparked by official confirmation from Iran that the Strait of Hormuz—the world's most critical oil transit chokepoint—remains completely open to maritime traffic. The announcement provides critical relief to global energy markets, which had been pricing in the risk of supply disruptions. The Strait of Hormuz is essential for the transport of crude oil and liquefied natural gas from the Persian Gulf to the rest of the world, and any threat to its stability typically triggers a spike in energy prices. While specific percentage gains were not detailed, the breaking of all-time highs for the S&P 500 and Nasdaq suggests a broad-based risk-on sentiment among investors. The removal of the immediate threat of a blockade allowed markets to pivot away from defensive positioning. The resolution of this geopolitical tension likely lowered overall market volatility and encouraged a rotation back into growth stocks and broad indices, as the immediate threat of an energy-driven inflationary shock subsided.