U.S. markets surged Wednesday morning after President Donald Trump announced a two-week ceasefire with Iran, easing fears of a prolonged disruption in global oil supply.
The Dow Jones Industrial Average jumped 1,048 points, or 2.3%, by late morning trading. The S&P 500 climbed 2.1%, while the Nasdaq Composite surged 2.6%.
The rally came as energy markets reversed sharply.
Brent crude plunged 13.1% to $94.96 a barrel — its lowest level in nearly a month — after news that Iran would allow ships to pass through the Strait of Hormuz, a chokepoint that carries roughly 20% of the world’s oil supply.
U.S. benchmark crude also dropped, with West Texas Intermediate falling 3.9% to $72.22 a barrel.
The market swing followed Trump’s late Tuesday announcement of what he called a “double sided” ceasefire.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump wrote, adding that the deal hinges on the “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.”
“We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate,” he added.
Iran confirmed it would reopen the strait temporarily, though officials emphasized the agreement is not a full peace deal. Israel has also reportedly signed on to the ceasefire.
For investors, the message was immediate: the worst-case scenario may be off the table — at least for now.
“Wall Street is exhaling as President Trump pressed pause on the destruction button,” said Robert Edwards, chief investment officer at Edwards Asset Management.
He noted that optimism around negotiations is helping end the recent market slide, though uncertainty remains.
“Even with this optimism, oil prices and stocks are still inversely correlated for the time being,” Edwards said. “It’s unclear how long these declines in oil will last.”
This story is developing…
🚨 JUST IN: Oil prices have PLUMMETED 15% after Trump makes clear to the Iranians that they MUST open up the Strait of Hormuz
Thank God!
Much needed relief at the pump is coming for Americans if we stay the course. pic.twitter.com/dhao84F6b8
— Nick Sortor (@nicksortor) April 8, 2026
