Stocks Rise as US-Iran Truce Deal Drives Oil Down – US Market Wrap

Following the US and Iran’s ceasefire agreement, a surge of optimism rushed across global financial markets, boosting stocks and causing the largest oil drop in about six years.

The increase in risk appetite drove the S&P 500 index up 2.5%. Crude ended below $95, calming concerns about an energy crisis and reigniting betting that the Federal Reserve will lower interest rates in 2026. Treasuries fluctuated. As the safe bid faded, the dollar’s year-to-date gains were erased. Bitcoin surpassed $71,000.

Wall Street’s so-called fear measure, the VIX, has fallen to pre-war levels. Airlines, which had been battered by concerns about rising fuel prices, surged. Emerging-market stocks rose the most since March 2020.

A two-week truce was announced just 90 minutes before Trump’s deadline for Iran to agree to a ceasefire and reopen the Strait of Hormuz. While there have been rumors of ongoing regional skirmishes, the pact has alleviated concerns about a worldwide economic disaster.