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Stocks in New York and Istanbul climbed to record highs Friday after Iran reopened the Strait of Hormuz to commercial traffic, easing supply concerns and lifting investor sentiment across global markets.
Oil prices dropped sharply following the announcement, with both Brent and U.S. benchmark WTI falling below $90 per barrel, marking a roughly 10% decline, as risk premiums built up during weeks of disruption unwound.
Wall Street surged as lower energy costs cast doubt on inflation risks tied to a prolonged energy squeeze. The Dow Jones Industrial Average rose 1.8%, gaining 868.71 points to close at 49,447.43.
The S&P 500 advanced 1.2% to 7,126.06, while the Nasdaq climbed 1.5% to 24,468.48, with both indices reaching record levels.
European equities also moved higher earlier in the day. The pan-European Stoxx 600 added 1.6%, while Germany’s DAX and France’s CAC 40 each rose around 2%.
In Türkiye, the BIST 100 index jumped 2.7% to close at 14,587.93 points, setting a new all-time high as local investors tracked the global rally.
Precious metals advanced alongside equities. Gold rose about 1% to near $4,900 per ounce, while silver gained 3% to move back above $80. Palladium and platinum also edged higher, rising by up to 1% to $1,548 and $2,086 per ounce.
Cryptocurrencies extended gains, reflecting broader risk appetite. Bitcoin climbed 3% to $77,430, and Ethereum rose to $2,430. The total crypto market capitalization increased 2.6% to $2.6 trillion.
Iran linked the reopening of the strait to the ongoing ceasefire in Lebanon. Foreign Minister Abbas Araghchi announced that commercial vessels would be allowed to pass through the waterway for the duration of the truce.
"In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire," he said.
The Strait of Hormuz, a critical chokepoint that normally carries about one-fifth of global oil flows, had been disrupted since Feb. 28, pushing oil prices close to $120 per barrel at their peak.
U.S. President Donald Trump indicated that the route would remain open and suggested that a broader agreement to end the conflict was nearing completion, with talks expected to be held in Islamabad within days, claiming that Tehran had agreed to hand over its enriched uranium.
Tehran, however, pushed back on claims related to its nuclear program, with Foreign Ministry spokesperson Esmaeil Baqaei saying a deal remains possible only if Iran’s rights and interests are secured.
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