Stock markets surge as Trump calls off strikes on Iran, touts peace deal
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- President Trump announced he cancelled planned strikes against Iran and said a “great settlement” with Tehran is imminent, pending finalisation of documents.
- S&P 500 closed nearly 1.8% higher, ending a three‑day losing streak and marking its biggest single‑day gain since April.
- Nasdaq Composite jumped 2.5% and the Dow Jones rose about 1.9%, while Asian indices such as South Korea’s Kospi (+8%) and Japan’s Nikkei 225 (+4%) also rallied.
- Brent crude slipped about 1% to under $89.50 a barrel as investors hoped for a return to normal shipping through the Strait of Hormuz.
- Iran’s foreign ministry said a memorandum of understanding with the United States is “under consideration,” without confirming the deal.
- Fabien Yip linked the rally to a “meaningful easing of geopolitical risk” and anticipation of the SpaceX IPO, calling it a healthy reset.
- Khoon Goh warned that sustained gains will depend on a signed deal and a full reopening of the Strait of Hormuz.
Why it matters: Investors gained as the political risk of a US‑Iran conflict receded, lifting equities and cutting oil prices, while the market’s durability hinges on a formal deal and a reopening of the Strait of Hormuz, factors that could reverse the rally if unmet.
