Iran Reopens Hormuz; Oil Drops 9%, Stocks Record

Oil prices fell roughly 9% and Wall Street equities rallied to a record high after Iran reopened the Strait of Hormuz, removing a critical supply-chain chokepoint that had kept energy markets on edge. The Strait of Hormuz handles an estimated 20% of global oil and gas flows, making any closure a direct threat to supply availability and a driver of risk premiums across energy contracts. The reopening unwound those premiums rapidly, with crude benchmarks repricing lower in a single session. Equity markets responded in kind, interpreting cheaper energy as a margin tailwind for transportation, industrials, and consumer-facing sectors. Lower oil prices also reduce near-term inflation pressure, which feeds expectations around monetary policy. Investors will now watch whether Iran's reopening holds and whether geopolitical conditions in the Gulf stabilize enough to keep the risk premium compressed, or whether renewed tension reasserts upward pressure on crude.