Oil prices plummet as Wall Street rallies to new record following Strait of Hormuz reopening
Summary
Oil prices dropped more than 10% after Iran said the Strait of Hormuz is fully open for oil tankers to pass. At the same time, U.S. stock markets rose toward new records, helped by positive earnings reports from some companies.Key Facts
- The Strait of Hormuz reopening allows oil tankers to carry crude oil from the Persian Gulf again.
- U.S. crude oil price fell 10.8% to $81.28 per barrel; Brent crude fell 10.3% to $89.13.
- The S&P 500 index rose 0.8%, the Dow Jones increased 1.4%, and the Nasdaq went up 1%.
- U.S. stocks have gained more than 11% since late March due to hopes the U.S. and Iran avoid worsening conflict.
- President Donald Trump said the war should be ending soon.
- Some U.S. companies, like State Street and Fifth Third Bancorp, reported better-than-expected profits.
- Netflix’s stock dropped 11.5% despite good profits, because it did not raise its forecast for full-year revenue growth.
- European stock markets rose strongly following the news, while some Asian markets closed lower before the announcement.
- Treasury bond yields fell, reflecting lower inflation pressure from the drop in oil prices.
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