Stocks Rally as Investors Grow Hopeful About a Hormuz Deal
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- U.S. stocks reached record highs on Tuesday as investors grew hopeful about a Hormuz deal and robust corporate earnings.
- Marco Rubio expressed optimism in negotiations to reopen the Strait of Hormuz, citing "progress in talks" but "not finality yet."
- Brent crude fell more than 5% to around $79 a barrel — its lowest price in three weeks — while West Texas Intermediate dropped to around $76.
- Qatar's foreign ministry spokesman said the talks were in "very progressive stages," with Qatar having mediated between Iran and the U.S. previously.
- Microsoft, Amazon and Palantir delivered strong AI-related earnings that further bolstered Wall Street sentiment.
- Investors are also closely watching Houthi militia efforts to restrict traffic in the Bab al-Mandab Strait at the southern end of the Red Sea, a Saudi Arabia-used alternative to the Strait of Hormuz.
Why it matters: Rubio and Qatar signaled "progress" in Hormuz talks but said no deal yet — oil traders still priced in a reopening, with Brent falling 5% to a three-week low near $79, while AI-heavy earnings from Microsoft, Amazon and Palantir pushed the S&P 500 to record highs.
