Oil Slides, Stock Rally After Hormuz Reopening

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On Saturday, April 18, 2026, oil prices tumbled sharply while global equities advanced after Iran signaled the reopening of the crucial Strait of Hormuz, easing supply fears and lifting investor sentiment.

Oil Tumbles as Hormuz Reopens, Market Cheer

“What happens when a chokepoint breathes again?” Markets answered swiftly. Crude prices plunged after Iran declared the Strait of Hormuz open, a vital artery carrying roughly one-fifth of global oil flows. The disruption, triggered since late February, had earlier driven prices close to $120 per barrel, unsettling the global economy.

Following the announcement, both Brent crude and West Texas Intermediate slipped below $90, with Brent settling at $90.38, marking a steep 9.1% decline.

Stocks Surge as Risk Sentiment Improves

Equity markets responded with vigor. The S&P 500 climbed to 7,126.06, gaining 1.2% on the day and 4.5% for the week. The reopening eased fears of prolonged supply disruptions, fueling optimism across financial markets and triggering a broad-based rally.