Traders operate on the floor of the New York Stock Exchange at the opening bell in New York City, April 7, 2026. Charly Triballeau/AFP via Getty Images
Shares surged ahead and crude oil values plummeted in the opening hours of trading this Wednesday, just a few hours following the declaration of a two-week truce between the U.S. and Iran.
The Dow Jones Industrial Average escalated by 1,215 points, reflecting a 2.6% increase, while the S&P 500 rose by 2.5%. The technology-focused Nasdaq advanced by 3.4%.
Under the terms of the agreement, Iran stated it would permit the transit of tankers via the Strait of Hormuz, a critical sea lane for oil and natural gas, on the condition of coordination with the country’s military forces. Investors seemed confident that this deal would mitigate one of the most severe worldwide oil deficits in recent decades.
The value of U.S. oil dropped by 18% this Wednesday, settling at about $92 per barrel. Despite this decrease, the price of oil stayed considerably higher than the pre-war level of around $67 per barrel.
President Donald Trump promoted the ceasefire in a Wednesday social media communication, declaring there would be "no Uranium enrichment," although the Iranians maintained that the U.S. consented to their strategy, which encompasses numerous compromises.
President Donald Trump addresses reporters during a press briefing held in the James Brady Press Briefing Room at the White House, April 6, 2026, in Washington.Mark Schiefelbein/AP
The president further stated that "the United States, collaborating with Iran, will excavate and eliminate all deeply buried (B-2 Bombers) Nuclear 'Dust.'"
The Iranian Supreme National Security Council's declaration on Tuesday incorporated "acceptance of enrichment" within its comprehensive 10-point proposal.
Market participants will likely be observing for a potential intensification of tanker activity passing through the Strait of Hormuz.
Normally, a significant number of ships move one-fifth of the planet’s oil through the strait daily, but Iran effectively blockaded the waterway throughout the conflict. That scarcity of oil caused crude values to escalate, and it posed a threat of broad price increases that some economists were afraid could push the U.S. economy towards a recession.
ABC News' David Brennan, Jon Haworth, and Nadine El-Bawab lent their efforts to this report.
Sourse: abcnews.go.com