A tentative ceasefire agreement between the United States and Iran has spurred a significant market reaction. Major stock indices surged, with the tech-heavy Nasdaq Composite leading gains by soaring 2.2%. Concurrently, oil prices dropped by more than $4 a barrel as the potential deal could soon reopen the crucial Strait of Hormuz to tanker traffic, impacting energy stocks.
President Donald Trump stated the U.S. had reached a ceasefire deal with Iran, calling it “complete” in a post to Truth Social. The provisional agreement may reopen the Strait of Hormuz to oil tankers as soon as this week, though normal flows could take months to resume. Formal talks to finalize the peace deal are expected to begin within 60 days, with a meeting scheduled for Friday in Switzerland to sign the interim accord.
The Nasdaq Composite soared 2.2% on the news, while the S&P 500 jumped 1.3% and the Dow Jones Industrial Average climbed 1.2%. Meanwhile, oil prices fell sharply, pressuring energy stocks like Chevron and Exxon Mobil, which dipped 3%. “Ships of the World, start your engines. Let the oil flow!” Trump wrote regarding the potential restoration of shipping. The framework agreement has been electronically signed by Trump, Vice President JD Vance, and Iran’s lead negotiator, Mohammad Bagher Ghalibaf.
Wall Street entered the week with momentum following SpaceX’s public debut. Shares of the Elon Musk-led company rose over 8% at the opening bell after rocketing up over 19% in their first session, pushing the company’s market value above $2 trillion. This activity contributed to the market’s positive trajectory amid the geopolitical developments.
