(CNN) — Oil prices dropped sharply and US stocks surged Friday after the Iranian foreign minister said the Strait of Hormuz will be “completely open” for commercial transit during the remainder of the ceasefire.

Brent crude, the global benchmark, fell 10%, to $89.20 per barrel. WTI, the US benchmark, sank 10.5% to $81.50 per barrel. Oil prices traded at their lowest levels in five weeks.

“In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire,” Iranian Foreign Minister Seyed Abbas Araghchi wrote in a post on X.

President Donald Trump on Thursday said Israel and Lebanon agreed to a 10-day ceasefire.

US stocks rallied: The Dow rose 745 points, or 1.54%. The S&P 500 gained 0.9%, and the Nasdaq rose 1%. The S&P and Nasdaq are coming off back-to-back days of record highs.

Stocks have rallied sharply this month on optimism about the US-Iran ceasefire and the recent pullback in oil prices. The S&P 500 has gained more than 11% since its recent nadir on March 30, a stunning rebound.

The Nasdaq Composite has gained 12 days in a row, its longest winning streak since 2009. A gain today would put the index at its longest winning streak since 1992.

The Strait of Hormuz has been a critical focus for markets. A willingness to open the key global shipping channel, even briefly, is causing swift relief for oil prices.

Trump in a Truth Social post Friday morning said, “Iran has just announced that the Strait of Iran is fully open and ready for full passage.”

Despite tumbling, Brent and US crude remain above their pre-war levels of $73 and $67 per barrel, respectively.

This is a developing story and will be updated.

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