Dow rallies 900 points, S&P 500 tops 7,100 for the first time after Iran declares Strait of Hormuz open

U.S. stocks rocketed higher on Friday after Iran declared the Strait of Hormuz “completely open” on the heels of a ceasefire announcement between Israel and Lebanon.

The Dow Jones Industrial Average rose by 916 points, or 1.9%. The S&P 500 traded up 1.2% and crossed 7,100 for the first time, while the Nasdaq Composite gained 1.4%, with both hitting new all-time intraday highs. The Russell 2000 also reached a fresh high. The small-cap index was last up 2%.

In a post on X published Friday, Iranian Foreign Minister Seyed Abbas Araghchi wrote, “In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.”

President Donald Trump had said Thursday that the leaders of Israel and Lebanon agreed to a 10-day ceasefire, which went into effect at 5 p.m. ET that day.

Oil prices plummeted following Iran’s announcement as supply disruption fears lessened. U.S. West Texas Intermediate futures dropped 10%, trading above $84 a barrel, while international benchmark Brent crude futures declined 9% to trade above $90 a barrel.