Iran allows ships through Strait of Hormuz

What happened: Iran opened the Strait of Hormuz to commercial traffic on Friday, March 11, following a brief closure. Oil prices, which had surged due to the closure, plummeted by up to 9% as the news broke. Swiss stocks rose sharply in response, while U.S. stocks hit record highs. Three supertankers carrying Iraqi and Saudi crude sailed through the strait, ending a backlog of vessels waiting to cross.

Market impact: The reopening of the strait eased concerns over global oil supply, driving down energy prices and benefiting energy-intensive industries. Swiss stocks, which have a significant exposure to energy and materials sectors, rose sharply. U.S. stocks, particularly those in the energy sector, also gained as the S&P 500 hit a record high.

What to watch next: On March 18, the U.S. Energy Information Administration will release its Short-Term Energy Outlook, which could provide insights into how the situation in the Strait of Hormuz is impacting global oil supply and demand. Additionally, on March 23, the U.S. and Iran will hold another round of indirect talks in Vienna, which could provide updates on the nuclear deal and potential further changes in the region's geopolitical landscape.