Stocks Rise as Oil Sinks On Strait of Hormuz Hopes

Global oil prices dropped to $93.50 per barrel as limited tanker traffic resumed through the Strait of Hormuz, easing supply fears amid the ongoing Iran conflict. Stocks and bonds rallied on optimism that increased shipments and potential strategic reserve releases by wealthy nations could stabilize energy markets. Traffic through the critical chokepoint remains severely disrupted, with only a trickle of vessels passing despite diplomatic efforts to secure safe passage. HSBC’s Racquel Oden noted markets react to short-term geopolitical headlines but ultimately follow corporate earnings, which remain robust despite volatility. The broader economic outlook stays positive as energy pressures ease, though risks persist if Hormuz tensions escalate further.