Iran announced that the Strait of Hormuz is now “fully open” to commercial traffic, a significant step toward ending a war with the US and Israel that had driven energy prices sharply higher.
Oil prices dropped by more than 9% following the announcement. Brent crude futures fell to around $90 per barrel in London, wiping out the week’s gains, while West Texas Intermediate dropped to around $85.
European natural gas benchmark prices declined by as much as 9.8%, falling to near €38 per megawatt-hour.
US stock futures rose after Iran’s announcement. Dow Jones futures climbed 524 points, or 1.1%. S&P 500 futures gained 0.8%, while Nasdaq 100 futures rose 0.9%.
On the other side of the Atlantic, European stocks surged sharply. The pan-European Stoxx 600 index rose 1.16%, with all major exchanges and most sectors moving into positive territory.
Airline stocks led the gains, with easyJet shares last up 6.2% and Wizz Air up 5%.
Oil and gas stocks were a notable exception, falling about 3% as news of the Strait’s opening weighed on oil prices. BP shares dropped 4.6%, while Shell fell 3.6%.
