Dow soars 1,400 points, oil plunges near $90 as Trump announces two-week ceasefire with Iran

• The Dow Jones surged 1,389 points (3%), while the S&P 500 and Nasdaq jumped 2.5% and 3.2% respectively as of 9:38 a.m. ET
• Brent crude oil plummeted 16.6% to $91.09 per barrel, while West Texas Intermediate fell 5.6% to $70.94 per barrel
• The ceasefire came less than two hours before Trump's deadline to bomb Iranian infrastructure, with Iran agreeing to allow safe passage through the strait that handles 20% of global oil supply

Market Summary: Stocks Rally on Iran Ceasefire, Oil Plunges

U.S. stock markets surged Wednesday morning following President Trump's announcement of a two-week ceasefire agreement with Iran, easing geopolitical tensions and triggering a sharp decline in crude oil prices.

Key Market Movements:

• Dow Jones Industrial Average jumped 1,389 points (3%) as of 9:38 a.m. ET
• S&P 500 futures climbed 2.5%
• Nasdaq futures gained 3.2%
• Brent crude plummeted 16.6% to $91.09 per barrel, its lowest level in nearly a month
• West Texas Intermediate crude fell 5.6% to $70.94 per barrel

Catalysts:

President Trump announced Tuesday evening via Truth Social that he agreed to a "double sided" two-week ceasefire with Iran. The agreement came less than two hours before Trump's ultimatum deadline, which threatened bombardment of Iranian power plants and bridges unless the Strait of Hormuz reopened.

The ceasefire is conditional on the "complete, immediate, and safe opening" of the Strait of Hormuz, a critical maritime chokepoint handling approximately 20% of global oil supply. Trump stated the U.S. received a 10-point proposal from Iran that provides a "workable basis" for negotiations.

Market Implications:

The dramatic oil price decline reflects immediate relief that crude shipments through the strait will resume, alleviating supply concerns. The broad-based stock rally indicates investor optimism about reduced geopolitical risk and potential inflation relief from lower energy prices. Markets are responding positively to diplomatic progress, though the temporary nature of the ceasefire suggests continued volatility ahead as negotiations proceed.

This remains a developing story with potential for further market-moving updates.