U.S. and Iran Report Progress Toward Peace Deal as Markets Rally
Markets surged Wednesday on reports that the U.S. believes it's nearing a peace deal with Iran to end the war and reopen the Strait of Hormuz, causing oil prices to plunge and stocks to hit record highs. However, Trump said it's "too soon" for direct talks and threatened further action if Iran doesn't cooperate.
Market Reaction to Peace Deal Prospects
The price of oil plunged and stocks surged Wednesday after a report said the U.S. believed it was nearing a deal to end the war with Iran and eventually reopen the Strait of Hormuz. The S&P 500 closed higher by 1.5% and the Nasdaq Composite jumped 2%, with both indexes closing at record highs.
Oil and Gas Price Changes
U.S. crude oil plunged by as much as 15%, to $88 per barrel, and international Brent crude oil fell as much as 11%, to $96 per barrel. Shortly before the Axios report and the market reaction, the average U.S. retail gas price jumped past $4.50 per gallon for the first time since July 2022.
Trump's Cautious Stance
Trump said "We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal," and later told PBS that he was optimistic about reaching an agreement before his scheduled trip to China next week. The moves moderated slightly after Trump told the New York Post in an interview that it was "too soon" to prepare to sign a peace deal.