US stock market hits record high amid hopes for Strait of Hormuz reopening | Financial Markets News
Oil Prices Decline as U.S. Officials Express Optimism Over Waterway Talks
Published August 5, 2026
Oil prices fell Tuesday as U.S. officials reported progress in negotiations aimed at reopening the Strait of Hormuz, a vital conduit for global oil supplies.
Brent crude, the international benchmark, declined to $79.11 per barrel, approximately 13 percent lower than the previous week following a reduction of nearly 5 percent overnight. The strait typically facilitates about one-fifth of the world’s oil shipments, which have been severely disrupted since the onset of the U.S.-Israel conflict with Iran in February.
The U.S. stock market reached an all-time high amid growing optimism about the waterway’s reopening and strong corporate earnings. The S&P 500 index increased by 1.8 percent, surpassing 7,700 for the first time, eclipsing its previous record of 7,620.90 set on June 2. The index has risen 12.8 percent this year, significantly above its historical average of 10.5 percent.
Among the notable performers was Palantir Technologies. Shares of the data analytics firm surged 29.5 percent after reporting second-quarter revenue of $1.94 billion, exceeding forecasts.
The Dow Jones Industrial Average also set a new record, climbing 1.7 percent to 54,085.88 for a second consecutive day. Asian markets followed suit on Wednesday, with Japan’s Nikkei 225 rising 3 percent and South Korea’s Kospi increasing by 4.6 percent.
U.S. Secretary of State Marco Rubio indicated that while a formal agreement had yet to be reached regarding the Strait of Hormuz, he remained hopeful that a resolution would occur “very shortly.” Treasury Secretary Scott Bessent stated that a deal might be finalized as soon as Tuesday or Wednesday.
Iranian officials also expressed cautious optimism. Esmaeil Baghaei, spokesperson for Iran’s Foreign Ministry, described discussions with Omani representatives about designating safe maritime routes as “positive.”
Maritime traffic in the Gulf has experienced significant limitations due to concerns over Iranian attacks and a U.S. blockade of Iranian ports. On Sunday, only nine vessels transited the critical waterway, compared to approximately 130 daily crossings before the conflict escalated.
Despite Tehran’s claims of controlling movement in the strait, U.S. military officials stated the waterway remains “free and open” to all commercial vessels. U.S. Central Command reported that over the past three months, American forces have assisted more than 1,000 vessels in successfully navigating the strait amid ongoing tensions.
