Hassett Says Navy Reopened Strait of Hormuz to Crude Oil

The wire just caught a major geopolitical update that is rippling across commodities and index books. White House official Kevin Hassett stated that the U.S. Navy has reopened the Strait of Hormuz, allowing crude oil to flow freely once again, according to reports flagged by FirstSquawk and DeItaone. Hassett added that there will be additional announcements about energy policy next week, while wires also noted that the administration is preparing actions regarding diesel prices. Energy markets reacted on the spot. Front-month WTI crude futures fell 3.93% to trade at $89.22 a barrel on our tape, while Brent futures declined 2.82% to $99.42. The easing of maritime transit fears delivered an immediate relief valve to headline supply shocks, even as macro crosscurrents remain elevated. That rapid plunge in energy prices landed right into an equity session already juggling conflicting domestic data. Earlier, Benzinga reported that the September jobs report missed expectations with just 29,000 nonfarm payrolls added. The subsequent easing in crude gave index futures room to extend morning advances, but dealer positioning shows a divided board rather than a uniform breakout. On my desk, SPY is trading at 771.29, up 0.96% on the session and operating firmly in long gamma above its 762.14 flip level. In this regime, dealers function as the tape's shock absorber, selling strength into the 775 call wall and keeping upside volatility controlled. VIX reflects that dampening effect, sliding 4.33% to 15.68. Yet the tech tape tells a completely different story. QQQ sits at 752, trading underneath its 755.15 gamma flip and pinned directly beneath its 755 call wall. While energy relief lifted broad sentiment, tech dealers remain positioned in short gamma with an expected move of plus or minus 1.34%. In short gamma, dealer hedging amplifies price moves rather than buffering them, meaning sudden swings are pushed rather than absorbed. The headline freed up physical barrels in Hormuz, knocking crude back below $90. For equity traders working intraday flow, the transmission mechanism is distinct: broad equities enjoy long gamma insulation, but tech remains locked on the wrong side of its flip line. What you do with that structure is your click.