Brent crude oil futures rose by 7% when markets opened Sunday night amid signs the US-Iran peace talks had stalled.

With word of the Strait of Hormuz reopening, the stock market soared on Friday. Oil prices dropped about 10%, and as a result, gas prices ticked downward. Kelly O'Grady breaks it all down.

Oil prices drop and stocks rise after Iran says the Strait of Hormuz reopened, but airlines face fuel shortages and higher costs amid ongoing recovery concerns.

Oil prices dropped back to where they were in the early days of the Iran war, and U.S. stocks raced to another record Friday after Iran said the Strait of Hormuz is open again for commercial tankers carrying crude from the Persian Gulf to customers worldwide.

Oil prices fell Friday after Iran signaled it would reopen the Strait of Hormuz to commercial traffic, lifting global equity markets. European and U.S. indices climbed to new highs. Iran’s foreign minister said the move follows a ceasefire between Israel and Lebanon and includes lifting the blockade on the key shipping route.

Shane Oliver, Chief Economist at AMP, says as long as the Strait of Hormuz remains open the risk of global recession will quickly start to recede.

Global oil prices fell sharply on Friday after Iran and the United States jointly announced the temporary reopening of the Strait of Hormuz, easing fears over a major disruption to the worlds oil supply.

For most of the past week, markets have traded as though the war with Iran were already over. The S&P 500 just hit its third-straight record high and the Nasdaq Composite is on its longest winning streak since 1992.