Stocks Stage Comeback as Hopes Grow Iran War May Be Nearing End – US Market Wrap

Wall Street staged a sharp rebound as hopes grew the 10-day-old war with Iran may be nearing a conclusion. Stocks and bonds climbed while oil tumbled after earlier surging above $100.

The S&P 500 rose almost 1% after Trump said the conflict is “very complete, pretty much” and progressing faster than his four- to five-week timeline. The benchmark erased an intraday drop of more than 1.5% for the first time since April. US crude later slid to around $86, while the 10-year Treasury yield snapped a five-day rise.

The volatile session highlighted how sensitive markets remain to headlines tied to the Middle East conflict, with rapid shifts in sentiment reversing earlier losses. Oil markets have been particularly strained as tanker traffic through the Strait of Hormuz stalled, disrupting global supplies.

Saudi Arabia has begun cutting production while increasing exports through alternative routes. Group of Seven finance ministers said they are ready to support energy markets if needed, including potential strategic reserve releases. Trump is also reviewing options to curb oil prices, including limiting US exports and waiving certain federal taxes.