{"id":61013,"date":"2026-04-17T09:38:21","date_gmt":"2026-04-17T13:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-plunge-as-iran-reopens-strait-of-hormuz-us-equities-surge-on-rate-cut-optimism\/61013\/"},"modified":"2026-04-17T09:38:21","modified_gmt":"2026-04-17T13:38:21","slug":"oil-prices-plunge-as-iran-reopens-strait-of-hormuz-us-equities-surge-on-rate-cut-optimism","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-plunge-as-iran-reopens-strait-of-hormuz-us-equities-surge-on-rate-cut-optimism\/61013\/","title":{"rendered":"Oil Prices Plunge as Iran Reopens Strait of Hormuz; US Equities Surge on Rate Cut Optimism"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Brent crude oil prices collapsed by as much as 10%<\/strong> following an announcement from Iran that the <strong>Strait of Hormuz<\/strong> is now fully open to commercial traffic.<\/li>\n<li><strong>US equity markets opened sharply higher<\/strong>, with the <a href=\"https:\/\/stockmarketwatch.com\/markets\/dowjones\/today.aspx\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/DIA\">DIA<\/a>) jumping over <strong>500 points<\/strong> to approach the 50,000 milestone.<\/li>\n<li><strong>Traders have increased bets on a Federal Reserve rate cut<\/strong>, now pricing in a <strong>60% probability<\/strong> of a reduction by December 2026 based on Fed fund futures.<\/li>\n<li><strong>Safe-haven assets saw a massive rally<\/strong> despite the risk-on mood in equities, as <strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> surged 2% to $4,881.81<\/strong> and <strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver-price.aspx\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a> climbed nearly 5%<\/strong>.<\/li>\n<li><strong>The European Central Bank (ECB)<\/strong> saw a shift in market expectations, with the probability of an April rate hike falling to <strong>8%<\/strong> as President Christine Lagarde warned of &quot;extreme uncertainty.&quot;<\/li>\n<\/ul>\n<h2>Oil Markets Rebound on Geopolitical De-escalation<\/h2>\n<p>Energy markets experienced a massive sell-off Friday morning after <strong>Iran\u2019s Foreign Minister Araghchi<\/strong> announced that the <strong>Strait of Hormuz<\/strong> is &quot;completely open&quot; for all commercial vessels. The move, which is reportedly in line with a ceasefire in Lebanon, led <strong>Brent Crude<\/strong> and <strong>WTI<\/strong> futures to drop more than <strong>8% to 10%<\/strong> in rapid succession.<\/p>\n<p>Despite the announcement, some market participants remain cautious. A shipping analyst cited by the <strong>Wall Street Journal<\/strong> noted that the announcement &quot;doesn&#39;t provide full clarity&quot; for long-term maritime security. Earlier in the day, <strong>U.S. CENTCOM<\/strong> reported that <strong>19 ships<\/strong> had complied with previous directions to turn around in the region, highlighting the volatility preceding the reopening.<\/p>\n<h2>Wall Street Rallies as Rate Cut Hopes Rise<\/h2>\n<p>US stocks surged at the opening bell as the easing of energy supply concerns cooled inflation fears. The Dow Jones Industrial Average (<a href=\"\/stock\/DIA\">DIA<\/a>) rose <strong>503.29 points (1.04%)<\/strong> to <strong>49,082.01<\/strong>, while the Nasdaq Composite (<a href=\"\/stock\/QQQ\">QQQ<\/a>) gained <strong>227.30 points (0.94%)<\/strong> to reach <strong>24,330.01<\/strong>. The <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) also traded higher, up <strong>0.65%<\/strong> at <strong>7,086.77<\/strong>.<\/p>\n<p>Market sentiment was further bolstered by a shift in interest rate expectations. Traders are now pricing in a <strong>60% chance<\/strong> that the <strong>Federal Reserve<\/strong> will cut interest rates by December 2026. <em>This pivot suggests that investors are beginning to look past the recent inflationary pressures toward a more accommodative monetary environment.<\/em><\/p>\n<h2>Precious Metals and Crypto Maintain Momentum<\/h2>\n<p>In a rare decoupling from the standard &quot;risk-on&quot; inverse relationship, precious metals surged alongside equities. <strong>Spot Gold<\/strong> extended its historic run, rising <strong>2% to $4,881.81 per ounce<\/strong>, while <strong>Spot Silver<\/strong> outperformed with a <strong>5% jump to $82.30<\/strong>. <em>The continued strength in metals suggests that while energy prices are falling, long-term inflation and geopolitical hedging remain top of mind for institutional investors.<\/em><\/p>\n<p>In the digital asset space, <strong>Bitcoin<\/strong> (<a href=\"\/stock\/BTC\">BTC<\/a>) is once again testing the <strong>$74,000\u2013$75,000 zone<\/strong>. According to data from <strong>Glassnode<\/strong>, options markets are showing increased activity as the cryptocurrency attempts to break through a resistance level that has seen two major rejections since March.<\/p>\n<h2>ECB Signals Caution Amid Middle East Uncertainty<\/h2>\n<p>In Europe, the <strong>CAC 40<\/strong> (<a href=\"\/stock\/%5EFCHI\">^FCHI<\/a>) rose <strong>2%<\/strong>, but central bank officials remain on high alert. <strong>ECB President Christine Lagarde<\/strong> stated that the bank is &quot;watching the situation carefully,&quot; noting that uncertainty regarding Euro area inflation has &quot;grown a lot&quot; since the start of the Middle East conflict.<\/p>\n<p>Money markets have responded by drastically reducing the odds of an <strong>ECB rate increase<\/strong> in April, with the probability falling to <strong>8%<\/strong> from <strong>15%<\/strong> earlier today. <em>Lagarde emphasized that upside risks to the economic outlook have increased in the short term, particularly if wage growth and inflation expectations exceed current forecasts.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent crude oil prices collapsed by as much as 10% following an announcement from Iran that the Strait 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