US stock market hits record high amid hopes for Strait of Hormuz reopening

Global equity markets surged on Wednesday following announcements of advancing diplomatic efforts to restore shipping through the Strait of Hormuz. The S&P 500 climbed 1.8 percent to exceed 7,700 for the first time, while the Dow Jones Industrial Average gained 1.7 percent to 54,085.88, marking consecutive record closes. Asian markets extended the rally, with Tokyo's Nikkei 225 rising 3 percent and Seoul's Kospi advancing 4.6 percent.

Corporate earnings contributed to market momentum, with data analytics firm Palantir Technologies among notable gainers, posting a 29.5 percent share increase following stronger-than-expected second-quarter revenue of $1.94 billion. The S&P 500 has now climbed 12.80 percent year-to-date, outpacing its historical average annual return.

Oil markets reflected reduced supply concerns as Brent crude futures for October delivery fell to $79.11 per barrel, down approximately 13 percent from the previous week. The decline followed reports that US and Iranian officials, working with Omani intermediaries, were making headway on establishing safe maritime corridors. US Secretary of State Marco Rubio indicated an agreement could materialise imminently, while Iran's Foreign Ministry characterised ongoing discussions as constructive.

Shipping through the Strait of Hormuz has faced severe constraints since late February, with only nine vessels transiting on a recent Sunday compared to approximately 130 daily crossings before disruptions began. The waterway facilitates roughly one-fifth of global oil supplies. US military officials stated the strait remained open to commercial traffic, noting assistance provided to over 1,000 vessels during the period of reduced transit activity.