Stocks Rally After US, Iran Agree to Reopen Strait of Hormuz

US and global equity markets rose after Washington and Tehran signed an electronic memorandum meant to restore shipping access through the Strait of Hormuz. The S&P 500 advanced 1.7%, the Nasdaq 100 gained 3.1% and the Dow Jones Industrial Average reached a record high. By the close, the MSCI World Index was up about 1.5%.

White House officials confirmed the memorandum was signed on Monday by President Donald Trump and Vice President JD Vance. Trump wrote that shipping access had already been partially restored and would be fully reopened later this week.

US crude oil settled below $81 a barrel after the announcement. Traders pared back expectations for further Federal Reserve rate increases following the drop in oil prices. Attention is focused on the Fed’s policy meeting later this week, where economists broadly expect officials to hold interest rates steady.

Treasury yields were little changed and the dollar remained broadly steady. Gold rose as some investors sought protection against ongoing geopolitical risk. Bitcoin climbed above $66,000 amid the wider risk-on sentiment. Equity gains were broad-based, and some strategists said easing regional tensions could prompt a shift into cyclical and economically sensitive sectors that had lagged in recent weeks.

Corporate news accompanied the market move. SpaceX extended gains after its public market debut. Nvidia attracted strong demand for a planned $25 billion bond offering. Fox agreed to acquire Roku in a transaction valued at about $22 billion including debt. Salesforce announced an acquisition of AI firm Fin for about $3.6 billion. Shares of payments company Fiserv fell after chief executive Michael Lyons left to lead Truist Financial.

Some investors cautioned that unresolved issues around Iran’s nuclear programme could affect the durability of the agreement and keep risk premiums on energy and regional stability elevated. The Strait of Hormuz is a key chokepoint for global oil shipments, and changes to access there can quickly influence energy prices and inflation expectations.