Oil drops, stocks hit records on hopes of Hormuz opening

Oil prices fell to a three-week low as US officials announced the potential reopening of the Strait of Hormuz to shipping, according to <source 674d21e4-3e5>. Treasury Secretary Scott Bessent stated that a deal could be reached imminently with Iran to open the strait, which has been blockaded for five months, significantly impacting Gulf oil and gas tankers.

The positive news boosted stock markets, with major Wall Street indices reaching record highs. European benchmarks in Paris, Milan, Frankfurt, and Madrid also closed at all-time highs. The market rally followed a tech-driven surge earlier in the week, fueled by concerns about AI investments and their economic impact. While investors expressed caution about the situation, they remained hopeful about the potential energy price stabilization, benefiting oil majors like BP and Saudi Aramco.