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The reopening of the Strait of Hormuz on Friday, which may only be temporary, is the clearest sign yet of optimism.
A currency trader talks on the phone near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between the U.S. dollar and the South Korean won, top center left, in the foreign exchange trading room at Hana Bank’s headquarters, in Seoul, South Korea, Friday, April 17, 2026. (AP Photo/Ahn Young-joon) AP
NEW YORK (AP) — Oil prices have fallen to where they were in the early days of the Iran war, and U.S. stocks raced to another record high Friday after Iran said the Strait of Hormuz is again open to commercial tankers carrying crude oil from the Persian Gulf to customers around the world.
The S&P 500 jumped 1.2% to an all-time high, ending a third straight week of big gains, its longest streak since Halloween. A freer flow of oil could ease pressure on prices not only for gasoline but also for groceries and all kinds of other products transported by vehicles. It could even help people ultimately pay less on credit card interest and mortgage bills.
The Dow Jones Industrial Average rose as much as 1,100 points before paring its gains to 868, or 1.8%. The Nasdaq Composite Index rose 1.5%.
The US stock market has jumped more than 12% since it reached its lowest level in late March, thanks to hopes that the United States and Iran will be able to avoid the worst scenario for the global economy despite the war between them. Friday’s reopening of the Strait of Hormuz, which may only be temporary, is the clearest sign yet of optimism, and President Donald Trump said late Thursday that the war “should be over very soon.”
The price of a barrel of US crude oil fell immediately after Iranian Foreign Minister Abbas Araghchi posted on X that passage for all commercial ships through the strait was “declared completely open” as a ceasefire appears to be holding in Lebanon. He said that it would remain open throughout the remainder of the ceasefire, and the price of US oil fell by 9.4% to settle at $82.59 per barrel.
Brent crude, the international standard, fell 9.1% to settle at $90.38 a barrel. It is certainly still above its pre-war price of $70, suggesting that some caution is still ingrained in financial markets.
Several times since the war began, optimism on Wall Street has quickly turned to doubt about the prospect of an end to the fighting. This, in turn, has led to wild and sudden fluctuations in the prices of everything from stocks to bonds to oil.
Minutes after the Iranian Foreign Minister announced the reopening of the Strait of Hormuz, Trump said on his social media network that the blockade imposed by the US Navy on Iranian ports will remain “in full force” until the two sides reach an agreement on the war. However, he also suggested that “it should proceed very quickly as most points have already been negotiated” and emphasized this in all capital letters.
Companies with big fuel bills surged to some of the biggest gains on Wall Street after oil prices fell.
United Airlines rose 7.1%, and Southwest Airlines rose 5.1%. A day earlier, the head of the International Energy Agency said Europe had “maybe six weeks or so” of jet fuel supplies remaining.
Cruise ship operators, which consume heavy fuel, also rose. Royal Caribbean Group shares gained 7.3%, and Carnival shares rose 7%.
Housing and auto-related companies also got some relief from lower oil prices.
As the threat of higher inflation hurting the economy recedes, a continued decline in oil prices could convince the Federal Reserve to resume its interest rate cuts to help the economy. The yield on the 10-year Treasury note fell to 4.24% from 4.32% late Thursday, and lower yields could lead to lower interest rates on mortgages and other loans to US households and businesses.
Builders FirstSource, a supplier of windows and other products, rose 5.5%, and homebuilder PulteGroup rose 5% on hopes that lower mortgage rates will spur more people to buy homes. Carvana stock rose 7% because lower loan rates could attract more customers to new cars.
A strong start to the earnings reporting season for major US companies also helped support the US stock market, and more financial companies joined the list to post bigger profits at the beginning of 2026 than analysts expected.
State Street rose 2.5%, and Fifth Third Bancorp added 1.7% after both reported better-than-expected results for the fourth quarter.
They helped offset a 9.7% decline for Netflix, which fell even though it posted better-than-expected earnings. It did not raise its full-year revenue growth forecast, which analysts said may have disappointed some investors.
It also said that Reed Hastings, co-founder and chairman of the streaming company, will step down from its board in June when his term ends.
Overall, the S&P 500 index rose 84.78 points to 7,126.06 points. The Dow Jones Industrial Average jumped 868.71 to 49,447.43, and the Nasdaq Composite rose 365.78 to 24,468.48.
In stock markets abroad, stock indices in Europe jumped after Iran’s announcement regarding the Strait of Hormuz. The French CAC 40 index jumped by 2%, and the German DAX index jumped by 2.3%.
In Asia, where trading ended the day before the announcement, indicators were weaker. Japan’s Nikkei 225 lost 1.8%, and Hong Kong’s Hang Seng fell 0.9% in two of the biggest losses.
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AP Business writers Chan Ho-him and Matt Ott contributed to this report.