Share and oil markets diverge on Iran War end game. Whos right?

If you had woken up today and heard someone say Wall Street’s tech sector rose more than 3 per cent overnight, you would expect it to be promptly followed by “April Fools’ Day”. But no, US stocks surged overnight, with the Dow Jones Industrial Average leaping 1,125 points on Tuesday. The benchmark S&P 500 gained 2.9 per cent for its largest gain since May 2025.

Markets are optimistic after news Donald Trump is willing to end the US military campaign against Iran. The Dow Jones Industrial Average rallied 2.5%, while the Nasdaq composite jumped 3.8 per cent. Hope began to build on Wall Street about a possible end to the war with Iran.

The news headlines supported that view. Indeed, optimism entered the market late Tuesday, Australian time, when the Wall Street Journal reported that President Donald Trump had told aides he was willing to end the US military campaign against Iran even if the Strait of Hormuz remained largely closed. The narrow waterway facilitates the flow of about 20 per cent of the global oil supply. Context: Wall Street experienced a significant surge in stock prices following news of potential peace talks involving Iran and the US military.

Overnight, Australian time, Trump urged countries dependent on oil to “build up some delayed courage” and “go get your own oil”. This coincided with Iran’s President Masoud Pezeshkian being reported as saying Iran was seeking “an end” to the war. China and Pakistan, which have been involved in peace negotiations, issued a proposal to restore stability in the Middle East. Fact Check: The news about potential peace developments in the Middle East led to a positive reaction in the stock market, with investors showing optimism about the possibility of the war ending.

The post Wall Street Experiences Record Surge Following News of Potential End to US Military Campaign Against Iran appeared first on Stock Market News.