US stocks have surged as optimism grew that the ongoing conflict involving Iran could come to an end soon, while oil prices pulled back.
Market sentiment improved after Iran’s president, Masoud Pezeshkian, signaled that the country has the “necessary will” to end the war with the United States and Israel, provided key conditions are met, including guarantees to prevent future aggression.
His remarks triggered a strong rally on Wall Street, with the Dow Jones Industrial Average jumping 2.5 percent, gaining more than 1,125 points to close at 46,341.51.
“This is the first concrete communication coming from Iran that feels verifiable,” said Art Hogan of B. Riley Wealth Management. “The market has been waiting for positive news after several weeks of decline.”
Despite the optimism, Israeli Prime Minister Benjamin Netanyahu maintained that military operations against Tehran were not over, reaffirming his commitment to dismantle Iran’s leadership.
The shift in tone from Iran also impacted the oil market, which has been highly sensitive since the conflict began. Brent crude futures fell 3.2 percent to $103.97 per barrel, while West Texas Intermediate dropped 1.5 percent to $101.38.
Earlier gains in US and European markets were also supported by reports that President Donald Trump was open to ending the war even if the Strait of Hormuz remained closed.
However, concerns about global energy supply persist. Analysts warn that Asia could bear the brunt of the crisis, with high oil prices continuing to strain economies.
“We think Asia will, for now, be the ones suffering the most,” said Jean Maynier, president of maritime analytics firm Kpler.
Energy costs remain a major concern globally. In the United States, average gasoline prices have risen above $4 per gallon for the first time since 2022, increasing pressure on policymakers to address rising fuel costs.
European stocks also closed higher despite fresh data showing a spike in inflation across the eurozone, driven largely by surging energy prices. Consumer prices rose 2.5 percent, up from 1.9 percent the previous month.
In Asia, markets closed mixed, reflecting ongoing uncertainty.
Key market figures:
Brent crude: down 3.2 percent at $103.97 per barrel
West Texas Intermediate: down 1.5 percent at $101.38 per barrel
Dow Jones: up 2.5 percent at 46,341.51
S&P 500: up 2.9 percent at 6,528.52
Nasdaq Composite: up 3.8 percent at 21,590.63
FTSE 100: up 0.5 percent at 10,176.45
CAC 40: up 0.6 percent at 7,816.94
DAX: up 0.5 percent at 22,680.04
Nikkei 225: down 1.6 percent at 51,063.72
Hang Seng: up 0.2 percent at 24,788.14
Shanghai Composite: down 0.8 percent at 3,891.86
Euro/dollar: $1.1551
Pound/dollar: $1.3236
Dollar/yen: 158.77