Oil Prices Plunge 10% and Stocks Hit Records as Iran Reopens the Strait of Hormuz

Oil prices plunged more than 10% on Friday, with Brent crude falling below $90 a barrel, as Iran declared the Strait of Hormuz fully open to commercial shipping during an ongoing ceasefire. U.S. stocks surged toward new records, extending a month-long rally fueled by optimism that the U.S.-Iran conflict might soon end, while gold briefly hit a one-month high before steadying.

The reopening came after statements from Iran's foreign minister and U.S. President Donald Trump confirming the vital waterway—through which about 20% of the world's oil flows—is accessible for tankers carrying crude and liquefied natural gas from the Persian Gulf to global markets. According to Bloomberg reports, oil tankers and LNG vessels quickly began dashing toward the strait, raising hopes for resumed flows after weeks of disruptions that had driven energy prices above $100 earlier in the month. Fast Company noted the sharp market pivot, with stocks climbing as fears of prolonged economic damage from the blockade eased.

This dramatic shift followed a volatile period sparked by U.S. and Israeli strikes on Iran, which prompted Tehran to impose a de facto closure of the strait, slashing maritime traffic and spiking energy costs. A fragile two-week ceasefire had been in place, but shipping remained cautious amid threats from Iran's Revolutionary Guard against foreign vessels. The Independent highlighted how President Trump's optimism on a potential U.S.-Iran truce, echoed by Tehran, triggered the latest rally in risky assets like stocks and Bitcoin, which gained around $12,000 in value.

While markets celebrated, caution persists. Bloomberg's evening briefing and podcasts, such as "The Strait of Hormuz Has Reopened – For Now" and "The Strait of Hormuz Is Open. Now What?", underscore lingering questions about the durability of the move. Some companies are holding back, and empty LNG tankers are only now testing the waters, as shipping firms weigh the risk of renewed tensions. The BBC reported Brent crude sinking by a tenth specifically due to the strait's availability for the ceasefire's remainder, but analysts warn that traffic and trepidation in the Persian Gulf could delay drops in consumer gasoline prices.

The stakes are enormous for global energy security and economies. A sustained reopening could stabilize supply chains, lower fuel costs for households and businesses worldwide, and boost growth threatened by earlier price surges. Wall Street's extended April surge, as detailed in Bloomberg coverage, reflects bets on peace prospects lifting credit markets and commodities broadly. Yet, with negotiations ongoing in places like Islamabad, the world remains on edge—any breakdown could reverse these gains and reignite disruptions.

Consumers, particularly in oil-importing nations like those in Europe and Asia, stand to benefit most if flows normalize quickly, though experts predict a lag before pump prices reflect the plunge. Energy producers in the Gulf may face revenue hits from the price drop, while investors in stocks and alternatives like gold navigate the whiplash. As tankers venture through and diplomats talk truce, the next hours and days will reveal if this marks a turning point toward lasting de-escalation or just a temporary breather in the Gulf standoff.