Hopes for reopening the Strait of Hormuz push world shares higher, as
Brent crude holds above $100
[May 07, 2026] By
ELAINE KURTENBACH
World shares jumped on Thursday, with Tokyo's Nikkei 225 gaining almost
6% to a new record as investors waited to see if the U.S. and Iran will
strike a deal allowing tankers to deliver crude from the Persian Gulf
again.
Japan's benchmark Nikkei 225 index jumped more than 3,300 points to
63,086.00 as markets in Tokyo reopened following “Golden Week” holidays.
In early European trading, Germany’s DAX edged 0.2% higher to 24,988.08
and the CAC 40 in Paris was up 0.3% at 8,325.55. Britain's FTSE 100
slipped 0.3% to 10,411.19.
The future for the S&P 500 was up 0.1% while that for the Dow Jones
Industrial Average climbed 0.3%.
Japan's Nikkei 225 has gained nearly 20% in the past three months and
more than 70% in the past year, pushed higher by strong buying of tech
shares that have benefited from the boom in artificial intelligence.
Computer chip equipment maker Tokyo Electron gained 9% and testing
equipment maker Advantest Corp. added 6.8%. Shin-Etsu Chemican gained
8.5%.
“I think it’s a kind of bubble because buying activity concentrated on
leading AI, artificial intelligence stock and semiconductor-related
stocks. It’s a situation where only semiconductor stocks are being
bought,” said Takashi Hiroki, chief strategist at MONEX.
Elsewhere in Asia, the Hang Seng in Hong Kong gained 1.7% to 26,668.37.
The S&P/ASX 200 in Australia was up 0.8% at 8,862.40.
In South Korea, the Kospi reversed early losses, gaining 1.4% to
7,490.05, the second straight day it has closed at a record high. The
benchmark jumped nearly 7% on Wednesday to barrel past 7,000 for the
first time.
Taiwan's Taiex surged 1.9%, lifted by a 3.1% gain for big computer
chipmaker TSMC.
On Wednesday, markets rallied worldwide after President Donald Trump
said the Strait of Hormuz could be “OPEN TO ALL” if Iran accepts a
reported agreement that the U.S. president did not detail.
Oil prices fell nearly 8% and the S&P 500 climbed 1.5% for its best day
in nearly a month, setting a fresh record. The Dow industrials jumped
1.2%, and the Nasdaq composite rose 2%.
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A person walks in front of an electronic stock board showing Japan's
Nikkei index at a securities firm Thursday, May 7, 2026, in Tokyo.
(AP Photo/Eugene Hoshiko)
 However, optimism was tempered by
continuing tensions. The U.S. military fired on an Iranian oil
tanker Wednesday as President Donald Trump sought to pressure Tehran
into reaching a deal to end the war. The military said in a social
media post that a fighter jet shot out the rudder of the tanker in
the Gulf of Oman as the vessel tried to breach an American blockade
of Iran’s ports.
Early Thursday in Asian trading, Brent crude oil yoyoed on Thursday,
shedding early gains to fall 30 cents to $100.97 a barrel. Benchmark
U.S. crude oil slipped 37 cents to $94.71 a barrel.
Oil prices sank Wednesday and stock markets rallied worldwide on
hopes that the United States and Iran were nearing a deal to allow
ships to deliver crude through the Strait of Hormuz.
The price for a barrel of Brent crude oil, the international
standard, fell 7.8% to $101.27, down from more than $115 early this
week. But after dipping below $97 a barrel, it pushed back above
$100 after Trump threatened to start bombing “at a much higher level
and intensity” if Iran does not accept his proposed agreement.
The effective closure of the strait due to the war threatens the
global economy because the conflict has blocked oil tankers from
using it to exit the Persian Gulf. A reopening could allow oil to
flow freely again and remove pressure on inflation that’s driving
prices up for all kinds of products worldwide.
U.S. stocks have remained resilient despite the war thanks partly to
strong profit reports by big U.S. companies for the start of 2026.
Chipmaker AMD helped lead the market Wednesday with a surge of 18.6%
after it joined the list of big-name companies topping expectations
for both profit and revenue.
In other dealings early Thursday, the U.S. dollar fell to 156.39
Japanese yen from 156.40 yen. The euro rose to $1.1752 from $1.1747.
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