US stock market reaches record high as hopes grow for Strait of Hormuz deal

US stocks climbed to record highs on Tuesday as investors welcomed strong corporate earnings and growing optimism that shipping through the Strait of Hormuz could soon resume.

The S&P 500 rose 1.8 percent to close above the 7,700 mark for the first time, surpassing its previous record set in June.

The Dow Jones Industrial Average also reached a fresh high for a second consecutive day, gaining 1.7 percent.

Markets were also lifted by hopes of progress in talks aimed at restoring shipping through the Strait of Hormuz, a key route for global oil supplies.

Brent crude prices fell about 5 percent overnight and traded at around $79 a barrel on Wednesday, extending losses from the previous week.

US Secretary of State Marco Rubio said he hoped an agreement would "happen very ‌shortly", while Treasury Secretary Scott Bessent said a deal could be reached as early as Tuesday or Wednesday.

Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, said discussions with Omani officials on safe shipping routes had been "positive".

The US military said the strategic waterway remained open to commercial traffic.

"Over the past three months, US forces have assisted more than 1,000 vessels in successfully transiting the strait despite unwarranted Iranian aggression, and these transits continue today," US Central Command said.