Stock Markets Surge on Hopes of Ending Iran Conflict

(MENAFN) The New York Stock Exchange closed sharply higher on Tuesday, marking the largest gains since May of last year, driven by increasing optimism that the Iran war might soon conclude.
The Dow Jones climbed 2.49%, adding 1,125.37 points to finish at 46,341.51. Meanwhile, the Nasdaq composite rose 3.83%, or 795.99 points, reaching 21,590.63, and the S&P 500 jumped 2.91%, an increase of 184.8 points, to settle at 6,528.52.

Investor sentiment improved further as the Volatility Index (VIX), commonly called the market’s “fear index,” dropped 17.51% to 25.25.

Markets responded positively to reports indicating that US President Donald Trump could be open to halting attacks on Iran, fueling hopes for a de-escalation in the ongoing conflict that has affected the region. The temporary closure of the Strait of Hormuz had previously caused widespread international concern.

Trump remarked on Tuesday that he anticipates the Iran war will not persist “much longer” and that the Strait of Hormuz would reopen “automatically” once US forces withdraw, according to a New York Post report.

On the Iranian side, Foreign Minister Abbas Araghchi stated on Tuesday that Iran is not seeking merely a ceasefire but aims for a complete termination of hostilities in the region. He emphasized that any settlement must guarantee protection against future attacks and include compensation for incurred damages.

In the wake of these developments, Brent crude oil prices declined 3.8%, trading at $103.29 per barrel as of 2035 GMT.

MENAFN01042026000045017167ID1110928464