Global Markets Surge as Strait of Hormuz Reopens, Slashing Oil Prices

US equity markets reached new historic peaks on Friday as geopolitical tensions in the Middle East eased significantly. The catalyst was the announcement by the Iranian Foreign Minister that the Strait of Hormuz has reopened, ending a six-week blockage that had severely constrained global energy flows and pressured global equities. The resolution of the blockade triggered a sharp reversal in sentiment, allowing the S&P 500 to erase previous war-related losses and close the week with a gain of nearly 5%. This shift underscored the market's extreme sensitivity to energy security and the rapid return of risk appetite once systemic threats subside. WTI crude oil prices collapsed by more than 10%, closing at $84.68 per barrel. This plunge hit energy giants hard, with Exxon Mobil and Chevron sliding 3.61% and 2.21%, respectively. Conversely, the lower fuel costs provided a significant tailwind for the travel sector, lifting American Airlines Group by 4.12% and Royal Caribbean Cruises by 7.34%. In the technology sector, Apple climbed 2.65% on the back of improved iPhone demand in China, contributing to the Nasdaq's 13th consecutive day of gains. However, Netflix diverged from the broader trend, tumbling 9.71% following a disappointing revenue outlook and the news that its co-founder is stepping down. The broader market rally saw the S&P 500 close at 7,126.06, the Nasdaq at 24,468.48, and the Dow Jones Industrial Average at 49,447.43. While negotiations for a permanent peace deal are ongoing, the immediate restoration of shipping lanes has provided the necessary stability for investors to push indices to record levels.