Markets rally as Trump eases Strait of Hormuz blockade amid Iran tensions
Global markets showed mixed movements on Friday as investors reacted to developments in the U.S.-Iran conflict. Oil prices dipped slightly, while gold saw a sharp rise. Meanwhile, U.S. stock indices closed higher after President Donald Trump announced key decisions on the Strait of Hormuz blockade. U.S. President Donald Trump met with advisors in the Situation Room to finalise a response to tensions with Iran. He later declared plans to lift the U.S. naval blockade of the Strait of Hormuz. In the same statement, he urged Iran to reopen the waterway to unrestricted shipping, remove any mines, and drop proposed tolls for passing vessels.
Financial markets responded to the news with cautious optimism. The Dow Jones Industrial Average closed at 51,032 points, up 0.7%. The S&P 500 followed, rising 0.2% to 7,580 points, while the Nasdaq 100 gained 0.4%, finishing at 30,333 points. Commodity prices shifted as the situation unfolded. A barrel of North Sea Brent crude fell 0.9% to $91.86. Gold, however, climbed 1.1%, reaching $4,547 per ounce. Currency markets also saw movement, with the euro strengthening to $1.1662, while a dollar bought €0.8575.
Trump’s decision to ease the Strait of Hormuz blockade comes amid ongoing tensions with Iran. Markets reacted with gains in equities and gold, though oil prices retreated slightly. The euro’s rise against the dollar reflected shifting investor sentiment in the wake of the announcement.
