Stocks Surge, Oil Crashes After US-Iran Ceasefire Brokered By Trump, Vance

Stocks roared higher Wednesday after President Donald Trump announced a two-week pause on military strikes against Iran, easing fears of a broader regional war and sending oil prices sharply lower after weeks of market turmoil.

The Dow Jones Industrial Average surged 1,384 points, or 2.9%, while the S&P 500 climbed 2.6%. The Nasdaq Composite jumped 3.3% as investors piled back into equities.

Oil prices cratered following the announcement. West Texas Intermediate crude fell more than 17% to $93.42 per barrel, while Brent crude dropped over 16% to $91.65 a barrel.

“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted on Truth Social. “We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”

Trump added that the temporary “double-sided” ceasefire depends on Iran agreeing to reopen the Strait of Hormuz, the key shipping lane that had been shut down during the five-week conflict and disrupted global energy markets.

Iran’s Supreme National Security Council has agreed to reopen the waterway for two weeks provided all attacks cease, according to a statement from Iran’s foreign minister. The statement added that shipping transit would need to be coordinated with Iran’s armed forces. Israel has also agreed to the ceasefire, according to multiple reports.

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“It wasn’t much of a surprise that there was an announced reprieve in the Iranian conflict. The market has gotten much better at sniffing out” Trump’s next move, said Jay Woods, chief market strategist for Freedom Capital Markets. “The concern now is if this all too familiar ‘two-week’ timeframe is going to lead to a resolution.”

Markets received an additional jolt after Trump said Wednesday morning that the U.S. is working with Iran to remove nuclear material from the country and is discussing possible tariff and sanctions relief.

Big tech and other beaten-down stocks led the rally. Nvidia and Amazon each gained more than 3%, while Tesla rose over 2%.

Major industrial and banking names also posted strong gains, with JPMorgan and Boeing both climbing more than 4%.

Energy stocks, however, moved sharply lower as crude prices plunged. Exxon Mobil dropped more than 7%, while Chevron slid over 6%.

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