Stocks rose on Wednesday after President Donald Trump halted attacks on Iran for two weeks, pausing a five-week conflict that has shut down a key waterway for global energy supplies.
The Dow Jones Industrial Average rose by 1,325.46 points, or 2.85%, to 47,909.92. It was the benchmark’s best day in nearly a year, when Trump first backtracked on the severity of his initial tariff announcement in April 2025.
The S&P 500 rose 2.51% to 6,782.81 and the Nasdaq Composite rose 2.80% to 22,635.00.
West Texas Intermediate crude oil futures fell more than 16% to close at $94.41 a barrel, the biggest daily drop since April 2020. International benchmark Brent for June delivery lost about 13% to close at $94.75, SEEbiz reports.
“I agree to suspend the bombing and attack on Iran for a period of two weeks,” Trump posted on Truth Social. “We have received a 10-point proposal from Iran and we believe it is a viable basis for negotiations.”
Trump said the “bilateral” ceasefire was conditional on Iran agreeing to open the Strait of Hormuz.
Iran’s Supreme National Security Council has agreed to reopen the waterway for two weeks until all attacks stop, according to a statement by Iran’s foreign minister. The statement said transit would have to be coordinated with Iran’s armed forces. Israel has also agreed to a ceasefire, according to media reports.
“It wasn’t a big surprise that the Iran deal was announced. The market has gotten a lot better at detecting” Trump’s next move, said Jay Woods, chief market strategist at Freedom Capital Markets. “The concern now is whether this all-too-familiar ‘two-week’ timeframe will lead to a resolution.”
