Hormuz Reopening Agreement Drives Markets to Records Amid Fed Leadership Concerns

U.S. stocks reached fresh record highs driven by hopes for a U.S.-Iran truce and the agreement to reopen the Strait of Hormuz, removing a critical bottleneck for global trade. These positive expectations pushed oil prices lower and significantly boosted investor sentiment across global markets. This momentum was further supported by Intel joining Elon Musk’s chip initiative, even as a leadership crisis at the Federal Reserve creates uncertainty. However, Saudi Arabia's finance minister introduced a note of caution, warning that normalizing energy flows will take time due to logistical challenges. While Morgan Stanley analysts view the reopening as a major milestone, they emphasize that technical and geopolitical hurdles remain a risk to long-term stability.