S&P 500 Hits Record High Above 7,700 on Strait of Hormuz Deal Hopes

Strait of Hormuz Crisis

Maritime traffic through the strategic waterway has been severely constrained since the US-Israel war on Iran commenced in late February. According to ship-tracking platform MarineTraffic, only nine vessels transited the strait on Sunday, compared with roughly 130 daily crossings before the conflict began.

The disruption stems from two compounding factors: Iranian threats to attack vessels in and around the strait, and a US blockade preventing access to Iranian ports. Tehran has repeatedly asserted its right to control maritime traffic through the waterway, a claim Washington has consistently rejected.

Diplomatic Signals and Military Claims

US Secretary of State Marco Rubio said on Tuesday that while no agreement had been finalized, he expected a deal to "happen very shortly." Treasury Secretary Scott Bessent told CNBC that an agreement could be reached as soon as Tuesday or Wednesday. Iran's Foreign Ministry spokesperson Esmaeil Baghaei described talks with Omani officials on designating safe shipping routes as "positive."

US Central Command stated on social media that the strait remained "free and open" to commercial vessels, adding that American forces had assisted more than 1,000 vessels in transiting the waterway over the past three months "despite unwarranted Iranian aggression."

What Comes Next

Negotiations between Iran and Oman continue, with both US and Iranian officials signalling progress on establishing safe maritime corridors. No formal agreement has been announced, but the optimistic tone from senior officials on both sides suggests a deal may be imminent. Market sentiment remains closely tied to developments in the talks, with any confirmed agreement expected to further ease oil prices and sustain the equity rally.