Oil prices fell sharply and global stock markets rallied following announcements about the reopening of key energy transport routes in the Middle East and Europe.

Iran announced that the Strait of Hormuz, a critical shipping lane for global oil transport, would be open to commercial vessels during a truce in Lebanon. The announcement came as part of broader regional diplomatic developments aimed at reducing tensions in the area.

The news had immediate effects on financial markets, with stock indices rising as investors welcomed the prospect of improved oil supply flows. Oil futures declined significantly on expectations that the reopening would ease supply constraints that had contributed to elevated energy prices.

Separately, Hungarian officials indicated that oil flows through the Druzhba pipeline could potentially resume next week. The pipeline has been a key route for Russian oil exports to European markets, and its restoration would further alleviate supply concerns.

The developments come amid ongoing concerns about energy security and oil price volatility that have affected global markets. The Trump administration also announced an extension of sanctions exemptions on some Russian oil, citing persistent high gasoline prices as a factor in the decision.

Market analysts noted that the combination of reopened shipping lanes and potential pipeline restoration could help stabilize global energy supplies, though they cautioned that geopolitical tensions in the region remain fluid.