Blue chips up 1.5%, Brent down 10%: markets react to de-escalation
The dollar, which has become a major defensive asset since the start of the U.S. conflict with Iran, has pulled back to pre-war levels
U.S. stocks opened the main session on April 17 with sharp growth. Shortly before the opening of trading in New York, Iran announced that it was fully opening the Strait of Hormuz to commercial shipping for the duration of the ceasefire in Lebanon.
Details
- The blue-chip index Dow Jones Industrial Average surged almost 1.5% in early trading.
- The Nasdaq Composite Technology Sector Index rose nearly 1 percent. The Nasdaq index rose for the 13th consecutive day, the longest period of uninterrupted growth since 1992, according to Dow Jones Market Data cited by Barron's.
- The S&P 500 broad market index added 0.8%. S&P is growing for the fifth day.
- The Bloomberg Dollar Index fell 0.5 percent to its lowest level since Feb. 27, leveling all the gains from the war.
- In London, meanwhile, the cost of Brent crude oil collapsed by more than 10% to $89.04 per barrel.
Context
Iran said on April 17 that it is fully opening the Strait of Hormuz to commercial shipping while a cease-fire is in place in Lebanon. Israel and Lebanon had agreed on a 10-day ceasefire the previous day.
A ceasefire in Lebanon was one of Iran's demands in talks with the US. US President Donald Trump welcomed the opening of the strait but said the US would continue to block ships leaving Iranian ports.
"The Strait of Hormuz is fully open and ready for business and unimpeded passage, but the naval blockade will only be in full effect against Iran until our deal with Iran is 100% complete," Trump said on Truth Social.
Trump ordered the blockade of the Strait of Hormuz after talks with Iran failed on April 11. According to Trump, the parties managed to agree on "most of the points" except for "the only really important one" - Iran's refusal to develop nuclear weapons.
This article was AI-translated and verified by a human editor
