Trump says Iran to scrap nuclear program; stocks hit record highs

• Oil prices plunged with WTI crude falling 14% to just above $80/barrel and Brent declining 10% to above $89 as supply disruption fears dissipated
• Airline stocks surged over 7% (American, United) and cruise operators jumped 7-8% (Carnival, Norwegian) on lower fuel costs and reduced geopolitical risk
• Trump stated the deal with Iran is 'mostly complete' with an unlimited nuclear suspension, though Iran has not confirmed claims about its nuclear program

Market Summary: Trump Signals Iran Nuclear Deal Progress; Equities Hit Records

Key Developments:

US President Donald Trump announced that Iran has agreed to suspend its nuclear program indefinitely and permanently reopen the Strait of Hormuz, triggering a broad market rally on Friday. Trump stated the deal to end hostilities—sparked by US-Israeli actions in late February—is "mostly complete," with final negotiations expected this weekend. Iran confirmed the Hormuz reopening during a 10-day Lebanon ceasefire but has not verified Trump's nuclear claims.

Market Performance:

• Dow Jones: +1,049 points (+2.2%)
• S&P 500: +1.4%, crossing 7,100 for the first time
• Nasdaq Composite: +1.6%
• Russell 2000: +2.2% to record high
• CBOE Volatility Index: fell to two-month low

Energy Sector Impact:

Oil prices plunged on eased supply disruption fears:

• WTI crude: -14% to just above $80/barrel
• Brent crude: -10% to above $89/barrel
• Exxon Mobil: -5.7%
• Chevron: -4.5%
• S&P 500 Energy Sector: -4.8%

Winners:

Airlines and cyclical stocks rallied sharply:

• American Airlines & United Airlines: +7%
• Carnival: +8.7%
• Norwegian Cruise Line: +7.5%
• Consumer stocks including Amazon and Airbnb also gained

Geopolitical Context:

The Strait of Hormuz—a critical global oil shipping route—is now fully open. Trump emphasized that US naval blockades of Iranian ports remain until a final peace agreement is reached. Negotiations may resume in Pakistan, potentially led by VP JD Vance, Jared Kushner, or Steve Witkoff.

Market Implications:

Reduced geopolitical risk and lower oil prices ease inflation concerns, boosting investor risk appetite across asset classes and supporting consumer-facing sectors.