S&P 500 and Nasdaq Hit Record Highs as Oil Crashes

West Texas Intermediate crude oil plunged 11.45% Friday to close at $83.85 per barrel — the second-largest single-day drop since the 2026 Iran war began in late February. The sell-off followed Iran's announcement that the Strait of Hormuz is “completely open” for commercial vessels.

The two-week decline in WTI now totals 24.8%, the largest two-week percentage drop since April 2020. Despite the sell-off, U.S. crude remains up approximately 25% since February 28 (when the war began) and up 45% year-to-date.

Brent crude also fell sharply. The Brent-WTI spread is normalizing from war-elevated levels as seaborne crude flows resume. Refining margins (crack spreads) are compressing as gasoline and diesel prices follow crude lower.

Equity markets celebrated the news. The S&P 500 and Nasdaq Composite both closed at record highs — their third straight record closes. The Dow also posted its third straight week of gains. For the week: S&P +4.5%, Nasdaq +7%, Dow +3%+.