Iran’s Foreign Minister Abbas Araghchi declared the Strait of Hormuz fully open to all commercial vessels for the duration of the ceasefire in a post on social media X on Friday.

“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,” Araghci said.

The announcement landed like a detonation in energy markets.

WTI crude – as tracked by the United States Oil Fund (NYSE:USO) – plunged over 14% to $81 a barrel and Brent fell 10% to $89.

The move accelerates a rout already underway: crude is now heading for its second consecutive week of losses and sits more than $30 below its March highs, as traders price out the scenario they had spent weeks pricing in.

Chart: Oil Prices Plunge 14% After Iran Announces The Reopening Of The Strait of Hormuz

Market Reactions: Peace Trade Broadens

U.S. equity futures extended record gains Friday as the Hormuz announcement landed on top of an already risk-on session.

The S&P 500 – as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY) – rose 0.7% at the open in New York trading to 7,082, setting fresh record highs.

The Dow Jones Industrial Average – as tracked by the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) – gained 1.1%, while the Nasdaq 100 – as tracked by the Invesco QQQ Trust (NASDAQ:QQQ) – advanced 1% to 26,600, on pace to notch its 13th consecutive session of gains.

A winning streak of that length has occurred only four times in Nasdaq 100 history since 1985.

The peace trade was clearest in travel. Airlines and cruise lines — the two industries whose cost structures are most directly punished by elevated jet fuel and bunker fuel prices — led the market higher.

United Airlines Holdings Inc. (NASDAQ:UAL) led the large-cap gainers with an 8.58% advance, followed by Alaska Air Group Inc. (NYSE:ALK) at +6.88%, Carnival Corporation & plc (NYSE:CCL) at +6.60% and Southwest Airlines Co. (NYSE:LUV) at +6.59%. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) gained 6.55%, Royal Caribbean Cruises Ltd. (NYSE:RCL) rose 6.04%, Delta Air Lines Inc. (NYSE:DAL) added 5.95% and American Airlines Group Inc. (NASDAQ:AAL) advanced 5.59%.

FTAI Aviation Ltd. (NASDAQ:FTAI) rose 5.15%.

The other side of the ledger was energy and fertilizer and chemicals. Dow Inc. (NYSE:DOW) fell 9.06%, LyondellBasell Industries N.V. (NYSE:LYB) shed 7.04% CF Industries Holdings Inc. (NYSE:CF) declined 7.93%.

In energy, APA Corporation (NASDAQ:APA) dropped 8.55%, Matador Resources Company (NYSE:MTDR) lost 7.64%. and Chord Energy Corporation (NASDAQ:CHRD) fell 6.64%.

Among larger E&P and refining names, Occidental Petroleum Corporation (NYSE:OXY) lost 5.85%, Valero Energy Corporation (NYSE:VLO) slid 5.63%, Diamondback Energy Inc. (NASDAQ:FANG) dropped 5.57%, EOG Resources Inc. (NYSE:EOG) fell 5.50%, Halliburton Company (NYSE:HAL) declined 5.19%, Devon Energy Corporation (NYSE:DVN) shed 5.14%, Exxon Mobil Corporation (NYSE:XOM) lost 4.97% and ConocoPhillips (NYSE:COP) fell 4.65%.

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