Oil prices drop 9% as Wall Street rallies to record high

Friday's reopening of the Strait of Hormuz, which may only be temporary, is the clearest signal yet for optimism.

Apr. 17, 2026 at 11:26pm

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An abstract geometric illustration composed of overlapping triangles, rectangles, and circles in shades of blue, orange, and grey, conceptually representing the volatility of oil prices and stock market performance amidst geopolitical tensions.The reopening of a key oil chokepoint sparks a Wall Street rally, but underlying economic uncertainty remains.NYC Today

Oil prices dropped back to where they were in the early days of the Iran war, and U.S. stocks raced to another record Friday after Iran said the Strait of Hormuz is open again for commercial tankers carrying crude from the Persian Gulf to customers worldwide. The S&P 500 leaped 1.2% to an all-time high and closed out a third straight week of big gains, its longest streak since Halloween. The Dow Jones Industrial Average surged as many as 1,100 points before paring its gain to 868, or 1.8%. The Nasdaq composite climbed 1.5%.

Why it matters

A freer flow of oil could take pressure off prices not only for gasoline but also for groceries and all kinds of other products that get moved by vehicles. It could even ultimately help people pay less on credit-card interest and mortgage bills. The reopening of the Strait of Hormuz, even if temporary, is a clear sign of optimism that the U.S. and Iran can avoid a worst-case scenario for the global economy despite their war.

The details

The price for a barrel of benchmark U.S. crude plunged immediately after Iran's foreign minister, Abbas Araghchi, posted on X that passage for all commercial vessels through the strait 'is declared completely open' as a ceasefire appears to be holding in Lebanon. He said it would stay open for the remaining period of the ceasefire, and the price for U.S. oil dropped 9.4% to settle at $82.59 per barrel. Brent crude, the international standard, fell 9.1% to settle at $90.38 per barrel. However, it remains above its $70 price from before the war, indicating some caution is still embedded in financial markets.

  • On Friday, April 17, 2026, Iran announced the Strait of Hormuz is open again for commercial tankers.

The players

Abbas Araghchi

Iran's foreign minister who announced the reopening of the Strait of Hormuz.

Donald Trump

The U.S. President who said the Iran war 'should be ending pretty soon'.

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What they’re saying

“Passage for all commercial vessels through the Strait of Hormuz 'is declared completely open' as a ceasefire appears to be holding in Lebanon.”

— Abbas Araghchi, Iran's Foreign Minister

“The U.S. Navy's blockade of Iranian ports remains 'in full force' until both sides reach a deal on the war, but 'should go very quickly in that most of the points are already negotiated'.”

— Donald Trump

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.