Wall Street Surges to Historic Highs as Iran Reopens Strait of Hormuz Amid Ceasefire

U.S. stocks surge to records as Iran opens the Strait of Hormuz following a Lebanon ceasefire. S&P 500 crosses 7,100 while oil prices crash 12%.

By: AXL Media

Published: Apr 18, 2026, 11:13 AM EDT

Source: Information for this report was sourced from CNBC

Market Milestone Reached as Regional Tensions Ease

The New York Stock Exchange witnessed a historic session as investors reacted to a sudden de-escalation in Middle Eastern hostilities. The S&P 500 climbed 1.2% to close at 7,126.06, marking its first-ever settlement above the 7,100 mark. Simultaneously, the Nasdaq Composite extended its winning streak to 13 consecutive days, its longest since 1992, gaining 1.52% to end at 24,468.48. Market analysts attribute this "wave of optimism" to the removal of the most severe tail risks associated with the ongoing conflict between the U.S., Israel, and Iran, which had significantly disrupted global trade since February.

Diplomatic Breakthrough in Lebanon Triggers Maritime Relief

The rally was ignited by a post on X from Iranian Foreign Minister Seyed Abbas Araghchi, who confirmed that the Strait of Hormuz would allow the passage of all commercial vessels for the duration of the 10-day ceasefire between Israel and Hezbollah. This ceasefire, announced by President Donald Trump on Thursday, took effect at midnight and was described by Israeli Prime Minister Benjamin Netanyahu as an opportunity for a "historic peace agreement." Despite the opening of the waterway, Iran’s Revolutionary Guard (IRGC) clarified that ships must still follow coordinated routes and obtain permission, while the U.S. Navy’s counter-blockade of Iranian ports remains in full effect.

Oil Prices Plummet as Energy Supply Disruptions Lessen

The reopening of the world’s most critical energy chokepoint had an immediate and dramatic impact on commodities. U.S. West Texas Intermediate (WTI) futures plummeted nearly 12% to $83.85 a barrel, while international benchmark Brent crude dropped 9% to settle at $90.38. Prior to this announcement, oil had traded at a significant premium due to fears of a total closure of the strait, which handles roughly 25% of the world’s daily energy consumption. The sudden availability of transit is expected to clear a backlog of approximately 800 tankers currently stranded in the Persian Gulf.