Oil prices tumbled on Friday after Iranian officials said they would allow commercial traffic to resume in the Strait of Hormuz, lifting equity markets in Europe and New York, where major indices hit new records.

Citing the ceasefire between Israel and Lebanon, Iran's Foreign Minister Abbas Araghchi said Tehran would lift its blockade on shipping through the key Gulf energy trade route.

"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," Araghchi said.

The broad-based S&P 500 gained 1.2 percent to 7,126, while the tech-rich Nasdaq Composite Index jumped 1.5 percent to 24,468.

The Dow Jones Industrial Average advanced 1.8 percent to 49,447.

Among the S&P 500's 11 major industry sectors, energy was the biggest loser, with Exxon Mobil and Chevron among the benchmark's top drags.

The biggest gainer was consumer discretionary, with cruise operators Carnival and Norwegian Cruise Line gaining sharply. Industrials was also a top gainer, with airline stocks such as United Airlines advancing sharply. (Agencies)



Edited by Robert Kemp