U.S. equities are trading lower on Thursday, although both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are trading significantly higher from their respective morning lows.
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Trade QQQ with leveragePresident Trump’s Wednesday evening address came as a letdown for many investors, as he signaled an escalation of tensions in the Middle East instead of a ceasefire. He vowed to strike Iran “extremely hard over the next two to three weeks,” adding that the Strait of Hormuz would “open up naturally” once the war ends.
Stock Market Recovers as Iran, Oman Draft Hormuz Shipping Protocol
Still, the stock market abruptly moved higher after Iranian deputy foreign minister Kazem Gharibabadi said that Iran and Oman are drafting a protocol to guarantee secure shipping routes through the Strait of Hormuz after the war, according to state news agency IRNA.
“Of course, these requirements will not mean restrictions, but rather to facilitate and ensure safe passage and provide better services to ships that pass through this route,” said Gharibabadi.
Brent crude futures (BZ), the international benchmark for oil, eased following the report, but are still trading higher on the day as traffic through the strait remains largely closed.