Market Update and Geopolitical News
The Nasdaq 100 index surged by 5.9% this week, while the S&P 500 rose by 4.4% and the Dow Jones increased by 3.3%. All three major indexes experienced a gain of over 1% on Friday, driven by geopolitical events surrounding the Strait of Hormuz.
On Friday, Iran’s foreign minister announced that the Strait of Hormuz is “completely open” for commercial shipping following a ceasefire between Israel and Lebanon. This declaration coincided with a drop in oil prices exceeding 10%. However, only 14 ships transited the strait in the past 24 hours, which is only 23% of normal traffic levels, as concerns about security remain high due to the U.S. blockade of Iranian oil vessels.
The current situation in the Strait of Hormuz is significant, given that it handles around 20% of the global crude supply. The region had faced unprecedented disruptions since late February, and even a partial reopening is promising for the global economy.
