Dow surges 1,200 points as U.S.-Iran ceasefire sends oil prices tumbling

Stocks soared Wednesday after President Donald Trump suspended attacks on Iran for two weeks, pausing a five-week conflict that closed a crucial waterway for global energy supplies.

The Dow Jones Industrial Average ripped 1,200 points higher, or 2.6%. The S&P 500 popped 2.4%, and the Nasdaq Composite surged 2.8%.

West Texas Intermediate crude futures tumbled more than 17% to $93.42 a barrel following Trump’s declaration. International benchmark Brent for June delivery lost more than 16% to $91.65 per barrel.

“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted on Truth Social. “We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”

Trump said the “double sided” ceasefire was contingent on Iran agreeing to an opening of the Strait of Hormuz.

Iran’s Supreme National Security Council has agreed to reopen the waterway for two weeks as long as all attacks are halted, according to a statement from Iran’s Foreign Minister. The statement said transit would need to be coordinated with Iran’s Armed Forces. Israel agreed to the ceasefire as well, according to media reports.

“It wasn’t much of a surprise that there was an announced reprieve in the Iranian conflict. The market has gotten much better at sniffing out” Trump’s next move, said Jay Woods, chief market strategist for Freedom Capital Markets. “The concern now is if this all too familiar ‘two-week’ timeframe is going to lead to a resolution.”