U.S. stocks staged a tremendous comeback over the past two weeks after slipping into a correction last month.
U.S. stocks rose and crude oil prices fell after the United States and Iran declared the Strait of Hormuz “completely open” for commercial traffic during the ceasefire between Israel and Lebanon.
In an April 17 social media post, Iranian Foreign Minister Seyed Abbas Araghchi stated that the vital global choke point would stay open for the remainder of the ceasefire between Israel and Lebanon.
“In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran,” he said on X.
President Donald Trump stated on Truth Social that the narrow waterway between Iran and the Arabian Peninsula is “open and ready for business.”
In a follow-up post, Trump noted that the U.S. naval blockade would remain in “full force.”
“But the naval blockade will remain in full force and effect as it pertains to Iran, only, until such time as our transaction with Iran is 100 percent complete,” he said.
“This process should go very quickly in that most of the points are already negotiated.”
The announcements sent crude oil futures dropping to their lowest levels since the early days of the seven-week-old conflict.
A barrel of West Texas Intermediate—the U.S. benchmark for oil prices—fell 11 percent to below $85 on the New York Mercantile Exchange.
Brent, the international benchmark for oil prices, fell by more than 10 percent to below $90 a barrel in overseas trading.
The Strait of Hormuz has been at the center of the volatility in global financial markets as it is a critical trade route for a fifth of the world’s oil supply.
It is unclear how fast the sharp decline will translate to less pain at the pump.
Gasoline prices have shot up, with the national average still above $4 per gallon, as of April 17, according to the American Automobile Association.
Treasury Secretary Scott Bessent, at an April 15 press briefing, expressed optimism that motorists could see $3-a-gallon gas sometime this summer.
“I’m optimistic that during the summer, we will see gas with a three in front of us sooner rather than later,” he told reporters. “I’m optimistic that sometime between June 20 and Sept. 20, we can have $3 gas again.”
By Andrew Moran
