Markets Surge as Strait of Hormuz Reopens, Signaling Middle East De-escalation

U.S. equities hit record highs as Iran's decision to reopen the Strait of Hormuz fuels hopes for a diplomatic truce with the United States. The geopolitical shift triggered a sharp decline in crude oil prices, benefiting broad markets while weighing on energy giants.

• S&P 500 and Nasdaq achieved their third consecutive record closes
• U.S. crude oil prices plummeted nearly 10% following the reopening of the Strait of Hormuz
• Energy sector lagged with Exxon Mobil down 3.5% and Chevron down over 2%
• Carnival and Norwegian Cruise Line surged 7% and 5% respectively
• Netflix shares fell nearly 10% due to weak guidance and the exit of Reed Hastings