Stocks Surge as Oil Pullback Fuels Hopes for End to Iran Conflict – US Market Wrap

Wall Street mounted a sharp recovery at the end of March, with equities rallying as oil prices declined on growing hopes that the war disrupting global markets and energy flows could be moving toward a conclusion.

Stocks posted their strongest gain since May on speculation that both the US and Iran may be seeking an exit from the conflict. The S&P 500 rose 2.9%, while the Nasdaq Composite jumped 3.8%. Airlines benefited from the drop in fuel prices, while energy producers lagged. US crude settled near $101 a barrel, pulling back from multiyear highs and helping extend gains in Treasuries. The dollar weakened and gold advanced.

Sentiment improved after Iran’s state news agency reported a call between European Council President Antonio Costa and President Masoud Pezeshkian, during which Iran signaled it was willing to end the war if guarantees were put in place to prevent renewed aggression.

Additional support came from reports that the US may be looking to avoid a prolonged campaign. President Donald Trump was said to view efforts to reopen the Strait of Hormuz as potentially extending the war beyond his preferred timeline, and later indicated the US would not remain involved much longer.