Iran Ceasefire Sends Stocks To 1-Month High, Crude Down 15%: What’s Moving Markets Wednesday?
U.S. stocks surged to one-month highs on Wednesday as a temporary ceasefire between the U.S. and Iran triggered the biggest single-day oil price collapse in years, easing concerns about energy-driven inflation and sparking a sweeping relief rally from airlines to semiconductors.
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President Donald Trump declared on Truth Social that Iran “has gone through what will be a very productive Regime Change” and pledged “there will be no enrichment of Uranium,” adding that many of the 15 negotiating points had been agreed to and that the U.S. would work with Tehran on tariff and sanctions relief.
The session was not without turbulence. Iran’s Foreign Minister Abbas Araghchi signaled that seriousness from the U.S. side would still be required to achieve lasting stability, while an early-morning report of an attack on Saudi Arabia’s vital east-west oil pipeline tested risk sentiment. Iran also signaled that Israeli strikes on Lebanon made after the ceasefire will trigger a strong response.
By midday in New York, WTI crude plunged 15.9% to around $95 per barrel — its steepest single-session drop since April 2020 — as Iran’s agreement to reopen the Strait of Hormuz eliminated a significant geopolitical premium that had built up in energy markets over five weeks of conflict.
Brent crude fell 13.3%, settling near $94.70 per barrel.
The yield on the 10-year U.S. Treasury note fell approximately three basis points to 4.27%, its lowest level in roughly three weeks, as the oil price collapse dampened inflation expectations.
Markets now price in roughly a 35% chance of a Federal Reserve rate cut by year-end, compared with near-zero odds at the start of the week.
Across U.S. equity markets gains were broad-based and led by technology, industrials, and consumer discretionary — precisely the sectors most sensitive to lower oil prices, falling yields and rebounding risk appetite.
The S&P 500 climbed to 6,783, up 2.5% and hitting its highest level in roughly a month. Sandisk Corp. (NASDAQ:SNDK) and Carnival Corp. (NYSE:CCL) were both more than 10% higher, leading within the S&P 500.
The Dow …
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