Mumbai: Crude oil prices fell nearly 10 percent after tensions in the Middle East showed signs of easing. The drop came after Iran confirmed that the Strait of Hormuz is now 'completely open' for commercial ships during the ceasefire period.
This route is one of the most important oil supply channels in the world. Any disruption usually pushes oil prices higher. Now, with shipping back to normal, fears of supply shortages have reduced sharply.
Wall Street Opens Strong
Global markets reacted quickly to the positive news. Wall Street opened much higher on Friday, continuing its strong rally.
The Dow Jones Industrial Average jumped more than 500 points, rising 1.1 percent at the opening bell. The S&P 500 gained 0.6 percent, while the Nasdaq Composite climbed 0.9 percent.
Both the S&P 500 and Nasdaq had already hit record highs in the previous session, and the momentum continued.
Ceasefire Lifts Market Mood
Investor confidence improved after a major geopolitical breakthrough. A 10-day ceasefire between Israel and Lebanon has reduced tensions in the region.
US President Donald Trump said the wider conflict involving Iran could end soon. He added that the situation is “going along swimmingly” and that a deal with Tehran is “very close.”
These comments further boosted market sentiment, as investors expect stability in global trade and energy supplies.
Positive Week For Markets
With tensions cooling, all three major US indices are now in positive territory for the week. Lower oil prices also help reduce inflation concerns, which is another positive sign for markets.
Overall, the easing of geopolitical risks has lifted global risk appetite, pushing equities higher and easing pressure on energy markets.
