Markets Rally as US-Iran Peace Deal Eases Energy Crisis; SpaceX IPO Soars
Global stock markets jumped Monday following a US-Iran ceasefire agreement that reopens the Strait of Hormuz and slashes oil prices, while SpaceX's historic IPO surges 19% in debut trading.
Markets Surge on Peace Deal
The Dow Jones Industrial Average gained 630 points (1.2%), the S&P 500 climbed 1.6%, while the Nasdaq Composite popped 2.4% on Monday as markets responded to geopolitical de-escalation. Equity markets rallied with the S&P 500 gaining 1.9% and the Nasdaq rising more than 2.5%, supported by comments from President Trump indicating that the U.S. and Iran have made progress toward a diplomatic resolution.
The pan-European Stoxx 600 index was up 1.2% at the open on Monday, as markets rallied on news that the U.S. had reached a peace deal with Iran, which includes a toll-free reopening of the Strait of Hormuz. France's CAC 40 led the way in early dealmaking with a 1.9% gain, followed by Germany's DAX, which was up 1.8%. Carmakers soared 3.7%, as construction companies spiked 3.2%, and travel and leisure stocks advanced 2.8%.
Energy Shock Eases, Inflation Concerns Retreat
On news of potential de-escalation, oil prices declined to around $87 per barrel while equities moved higher. The ceasefire deal offers significant relief after months of elevated crude prices stemming from the Middle East conflict. After months of conflict, the US and Iran agreed to a peace deal. The move could lower oil prices, support the rupee, revive India's exports and ease inflation concerns.
SpaceX Sets Record IPO, Tech Stocks Rebound
SpaceX shares rose 6% in the premarket, looking to build on their record-setting market debut. The stock popped 19% on Friday, marking the biggest initial public offering in history. The landmark IPO represents a major validation of the commercial space sector and reflects strong investor appetite for growth stories.
Asian tech stocks surged Monday, as investors cheered Iran and the U.S. agreeing to a deal to end the Middle East conflict. Japanese tech investor SoftBank was the best performer among major tech stocks in Asia, rising over 12%. Tokyo Electron and Advantest added 9.19% and 7.69% respectively.
Inflation Remains Sticky Despite Oil Relief
While the peace deal provides welcome relief from energy-driven inflation, underlying price pressures persist. The annual inflation rate in the United States was 4.2% for the 12 months ending May, up from 3.8% previously, according to U.S. Labor Department data released June 10, 2026. Headline Producer Price Index (PPI) inflation rose 6.5% year-over-year in May—the highest annual reading since 2022—as elevated energy costs continued to push up headline inflation.