U.S. stocks surge as Dow Jones jumps over 1000 points

U.S. stocks surged on Friday after Iran announced the "full" reopening of the Strait of Hormuz to commercial navigation, following the ceasefire declaration between Israel and Lebanon.

The Dow Jones Industrial Average jumped by approximately 1005 points, or 2.1%, while the S&P 500 rose 1.3%, surpassing the 7100 level for the first time in history. The Nasdaq also climbed 1.5%, with both indices reaching new record highs during trading. Similarly, the Russell 2000 index hit an all-time high, rising by about 2%.

In a post on the "X" platform, Iranian Foreign Minister Abbas Araghchi announced that "in line with the ceasefire in Lebanon, the passage of all commercial vessels through the Strait of Hormuz has been declared fully open during the truce period, according to the coordinated route previously announced by the Ports and Maritime Organization of the Islamic Republic of Iran."

U.S. President Donald Trump had stated on Thursday that the leaders of Israel and Lebanon agreed to a 10-day truce, which went into effect at 5:00 PM ET.

Following Iran's announcement, oil prices dropped sharply as concerns over supply disruptions receded. U.S. West Texas Intermediate (WTI) crude contracts plunged by about 14% to trade above $80 per barrel, while global benchmark Brent crude contracts fell 13% to trade above $86 per barrel.

In a separate post on "Truth Social," Trump thanked Iran for reopening the Strait, but simultaneously emphasized that the U.S. Navy's naval blockade on Iranian ports "will remain fully in place" until a peace agreement is reached with Tehran, adding: "This process should move very quickly, as most points have already been negotiated."

Hopes for a peace agreement have pushed markets to record levels in recent days, with the three major indices heading toward strong weekly gains; the Dow Jones has risen by about 3%, the S&P 500 by more than 4%, and the Nasdaq has jumped by more than 6%.