Dow Jones surges over 1,300 points on US-Iran ceasefire

Thursday 09 April 2026 - 07:50

By: Dakir Madiha

Dow Jones surges over 1,300 points on US-Iran ceasefire

U.S. stock markets posted sharp gains Wednesday, their strongest session in a year, after the United States and Iran agreed to a two-week ceasefire. The truce raised hopes of easing an oil shortage that had stalled the economy. The Dow Jones Industrial Average climbed 1,325 points, or 2.85 percent. The S&P 500 rose 2.5 percent, and the Nasdaq Composite gained nearly 3.5 percent. This marked the Dow's largest daily increase since April 2025, following a tariff suspension rebound.

President Donald Trump announced the deal late Tuesday on Truth Social, about 90 minutes before his self-imposed deadline for Iran to meet demands or face military escalation. Pakistani Prime Minister Shehbaz Sharif mediated the talks and confirmed the agreement on X. He invited both sides to Islamabad for further discussions. Iran's Foreign Minister Abbas Araghchi stated Tehran would allow tankers through the Strait of Hormuz, a vital 34-kilometer-wide channel for much of the world's oil, if attacks on Iran stopped. Israel endorsed the ceasefire, though Prime Minister Benjamin Netanyahu's office clarified it did not cover Lebanon, where strikes on Hezbollah continued.

Oil prices plunged on expectations of resumed exports. West Texas Intermediate crude fell nearly 18 percent to about $93 a barrel. Brent crude dropped 16 percent. Prices remained well above the $67 per barrel level before late February conflict. Airlines led the stock rally: Delta Air Lines rose 12 percent, American Airlines gained 11 percent, and Southwest Airlines jumped nearly 13 percent. Energy stocks declined, with Exxon Mobil, Chevron, and Occidental Petroleum falling on lower oil prices.

Signs of fragility emerged quickly. Iran's parliament president accused the United States of breaching terms, citing ongoing Israeli strikes in Lebanon and a drone incursion over Iranian airspace. Satellite data showed limited maritime traffic in the Strait of Hormuz Wednesday morning, similar to prior weeks. Adam Johnston, a Cantor Fitzgerald equity strategist, told CNBC's Closing Bell Overtime that short-term risks persisted with multiple players involved and the strait still closed, but he viewed it as a buying opportunity.