Oil prices dropped by 9% and U.S. stocks surged to a record high after Iran announced that the Strait of Hormuz is open again for commercial tankers carrying crude from the Persian Gulf to customers worldwide. The S&P 500 jumped 1.2% to an all-time high and closed out a third consecutive week of big gains, marking the longest streak since Halloween. The reopening of the strait, which may only be temporary, is seen as a signal of optimism about a potential end to the Iran war. The Dow Jones Industrial Average surged 1,100 points before paring its gain to 868, or 1.8%, and the Nasdaq composite climbed 1.5%. The stock market has risen more than 12% since its bottom in March on hopes that the United States and Iran can avoid a worst-case scenario for the global economy despite their war. A drop in oil prices could convince the Federal Reserve to resume its cuts to interest rates to help the economy. Companies with large fuel bills saw their biggest gains, including United Airlines, Southwest Airlines, and State Street, which also benefited from the easing of oil prices.