Stocks Surge, Oil Tumbles 10% on Hormuz Opening

Canadian and U.S. stock markets surged in early afternoon trading on Friday, while oil prices tumbled more than 10 percent, following an announcement from Iran's foreign minister that the Strait of Hormuz is fully open amid an ongoing conflict in the region.

The development came as part of efforts to extend a ceasefire that has paused nearly seven weeks of fighting between Israel, the United States, and Iran. U.S. President Donald Trump initially posted on social media celebrating the news, stating that Iran had announced the strait "is fully open and ready for full passage." However, he followed up minutes later with another post indicating that the U.S. blockade of Iranian ships and ports would persist until a deal with Iran is finalized.

In Toronto, the S&P/TSX composite index climbed 318.92 points to close at 34,371.15. New York markets also rallied sharply, with the Dow Jones industrial average gaining 1,064.88 points to 49,643.60, the S&P 500 rising 94.34 points to 7,135.80, and the Nasdaq composite advancing 377.59 points to 24,480.30. The June crude oil contract fell US$9.77 to US$81.40 per barrel, reflecting investor relief over potential normalization of oil flows...