NEW YORK – U.S. equity markets surged on April 17, 2026, as Iran announced the reopening of the Strait of Hormuz, triggering a sharp correction in energy prices and a broad recovery across transport and tourism sectors.
The move, following a ceasefire between Israel and Lebanon, has shifted market risk assessments and removed a primary catalyst for geopolitical volatility that had pressured global supply chains.
A trader works on the floor of the New York Stock Exchange.
Angela Weiss | Afp | Getty Images
Equity Markets Hit Record Thresholds
Major U.S. indexes posted fresh intraday and closing records on April 17, driven by the sudden easing of tensions in the Middle East and a rapid unwind of recent “risk-off” positioning. The S&P 500 crossed the 7,100 threshold for the first time, while the Nasdaq Composite extended its longest positive streak since 1992.
- S&P 500: Closed at 7,126.06 (+1.2%)
- Nasdaq Composite: Closed at 24,468.48 (+1.52%)
- Dow Jones Industrial Average: Closed at 49,447.43 (+1.79%, up 868.71 points)
- Russell 2000: Rose more than 2% to a fresh high, led by economically sensitive small caps
The rally reflects a broader weekly trend fueled by peace deal expectations and a reassessment of energy supply risk. Over the five-day period, the Nasdaq advanced 6.8%, the S&P 500 rose 4.5%, and the Dow added 3.2%, even as investors continued to parse Federal Reserve guidance and domestic economic data.
S&P 500, 5-day
Energy Price Correction and Maritime Logistics
Oil prices plummeted as the risk of supply disruption vanished with the reopening of the Strait of Hormuz, a critical chokepoint that normally handles a significant share of seaborne crude and refined product exports under the global trading rules set out in the U.N. Convention on the Law of the Sea.
U.S. West Texas Intermediate (WTI) futures dropped nearly 12% to settle at $83.85 a barrel, while the international Brent crude benchmark declined 9% to settle at $90.38 a barrel. The pullback eased recent pressure on refiners, airlines and energy‑intensive manufacturers that had been bracing for a prolonged supply squeeze.
Iranian Foreign Minister Seyed Abbas Araghchi confirmed the reopening via a post on X on April 17, stating: “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.”
The geopolitical resolution follows a 10-day ceasefire between Israel and Lebanon, which President Donald Trump announced took effect at 5 p.m. ET on April 16. U.S. officials have framed the reopening of the waterway as an early confidence-building measure within a broader, still‑evolving framework of talks.
While Trump stated that Iran agreed never to close the waterway again, the reopening may be conditional. Iran’s Tasnim news agency reported that ships and cargo linked to “hostile nations” would be barred from passage and warned that the strait would close if the U.S. blockade of Iranian ports persists. The possibility of mandated tolls for traversing the waterway also remains unconfirmed, raising fresh questions for insurers and shipowners about how any new regime would interact with existing maritime law and sanctions compliance requirements.
Corporate Recovery in Transportation and Tourism
Industries most sensitive to Middle Eastern instability saw significant rebounds as crude benchmarks reset lower and shipping lanes normalized. Royal Caribbean shares advanced 7%, while Boeing, a pillar of the global aerospace sector, rose 2%. Amazon and Airbnb also recorded gains, reflecting renewed optimism around consumer travel and logistics capacity.
The recovery in these stocks follows a period of heightened vulnerability caused by the potential closure of the strait, which would have disrupted flight paths, cruise itineraries and key e‑commerce delivery routes. Analysts noted that airline and cruise operators had been modeling fuel surcharges and route diversions; those contingency plans are now being unwound, at least temporarily.
“I think the market has walked back the worst-case scenarios, and it sees a path for the U.S. and Iran to end the conflict and the Strait of Hormuz to remain open. As long as that remains the most likely path, then markets will discount it,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial.
Saglimbene noted that while the immediate geopolitical rally has occurred, the focus for high-weight technology stocks, specifically the “Magnificent Seven,” will now shift toward fundamental earnings. He emphasized that for these companies, meeting analyst estimates and providing strong forward-looking outlooks will be essential to sustain the current momentum, particularly as regulators and policymakers scrutinize market concentration and systemic risk.
President Trump has indicated that the conflict with Iran is “very close to over” and that negotiations are progressing “swimmingly,” suggesting that most points have already been negotiated. Market participants, however, remain alert to the risk that any breakdown in talks could quickly reprice energy and shipping assets.
The U.S. Navy blockade of Iranian ports remains in full force pending a final peace agreement with Tehran. Until that changes, corporate and institutional decision-makers across energy, shipping and finance are expected to keep contingency plans in place and to monitor any formal guidance from the U.S. Treasury’s Office of Foreign Assets Control on how potential new transit rules in the Strait of Hormuz would align with existing sanctions programs.
