Wall Street Rallies on Trump Ceasefire Extension as Oil Prices Climb Amid Gulf Tensions
The two-week truce with Tehran, initially set to expire this week, was extended following a request from Pakistani mediators.
ERBIL (Kurdistan24) — U.S. stocks rose sharply early Wednesday after U.S. President Donald Trump announced an extension of the Iran ceasefire, boosting investor sentiment alongside a wave of largely positive corporate earnings.
The two-week truce with Tehran, initially set to expire this week, was extended following a request from Pakistani mediators. Trump said the decision would allow Iran’s “fractured” leadership additional time to formulate a proposal aimed at resolving the conflict.
Markets reacted positively to the development, with investors encouraged by the reduced likelihood of an immediate escalation in tensions between Washington and Tehran.
About 35 minutes into trading, the Dow Jones Industrial Average climbed 0.8 percent to 49,552.28. The S&P 500 rose 0.7 percent to 7,116.50, while the tech-heavy Nasdaq Composite advanced 0.9 percent to 24,473.07.
“Markets are exuberant about the idea of a ceasefire continuing,” said Steve Sosnick of Interactive Brokers. He noted that while earnings have generally been solid, the market’s strong upward reaction may be disproportionate.
“Right now, we’re not in a normal environment,” Sosnick added. “Anything that could plausibly be considered good news, or even okay news, will be taken as a positive.”
Despite the stock rally, oil prices moved higher after Iran’s Revolutionary Guards announced that naval forces had seized two container ships attempting to cross the Strait of Hormuz, which remains under blockade. The development underscores the ongoing risks in the region’s vital shipping lanes.
Among individual companies, Boeing shares rose 2.2 percent, while GE Vernova surged 11.4 percent following earnings. In contrast, United Airlines fell 3.6 percent after reporting its results.
Analysts say markets remain highly sensitive to geopolitical developments, with the ceasefire extension offering temporary relief even as tensions in the Gulf continue to influence global energy prices.