NEW: Stock Market Surges After Iranian President’s Reported Comments On Ending War

Stocks ripped higher Tuesday as fresh chatter about a possible end to the U.S.-Iran war lit a fire under Wall Street.

The Dow Jones Industrial Average jumped 979 points, or 2.2%, after briefly surging more than 1,100 points on an unconfirmed report that Iranian President Masoud Pezeshkian may be open to winding down the conflict with guarantees. The S&P 500 climbed 2.6%, while the Nasdaq Composite rallied 3.6%.

Investors have heard similar rhetoric before. Earlier this month, Pezeshkian posted on X that the “only way to end this war — ignited by the Zionist regime & US — is recognizing Iran’s legitimate rights, payment of reparations, and firm int’l guarantees against future aggression.”

Still, optimism got another boost after The Wall Street Journal reported that President Donald Trump told aides he would consider ending military operations even if the Strait of Hormuz remains largely closed. The New York Post separately reported Trump believes the war could wrap up soon, with other countries stepping in to reopen the critical shipping lane.

Masoud Pezeshkian (Creative Commons)

Tech stocks, battered since fighting broke out, led the rebound. The Technology Select Sector SPDR Fund (XLK) rose nearly 2%, while Nvidia gained more than 3% and Microsoft added over 1%.

“Any steps toward ending the war overall, the stock market likes, and so, you are getting that relief rally,” said Eric Diton, president at The Wealth Alliance. “But no, we’re not out of the woods.”

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“The bottom line is, if we haven’t solved the oil problem, then that continues to put pressure,” Diton added.

Oil markets told a more cautious story.

Crude prices stayed elevated after Bloomberg reported Iran struck a Kuwaiti oil tanker in Dubai waters. Dubai officials said no one was hurt, noting in a post on X that “the safety of all 24 crew members has been secured.”

Brent crude futures rose 5% to top $118 per barrel, while West Texas Intermediate futures slipped about 1% but still hovered above $101 per barrel.

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