US-Iran Peace Deal Spurs Market Surge: Stocks Soar, Oil Prices Plummet

The Dow Jones Industrial Average closed at a record high on Thursday, 12 June. The S&P 500 posted its biggest single-day gain since April. Oil prices hit their lowest level since March. All of it traced back to one announcement: the United States and Iran had agreed to end their war.

On Sunday, Trump declared the deal 'now complete' in a Truth Social post late Sunday. Markets responded positively on Monday morning, with futures rising sharply ahead of the open. According to CNBC, Dow futures added 440 points, or 0.9%, while S&P 500 futures climbed 1.14% and Nasdaq 100 futures rose 1.79%.

President Donald Trump posted the news on Truth Social, declaring: 'I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!'

Iran's Deputy Foreign Minister confirmed the deal would be formally signed on Friday in Switzerland, with Pakistan serving as a key mediator throughout the negotiations.

The conflict, which began on 28 February 2026, had lasted more than three months and killed thousands across the Middle East, including senior Iranian leaders. Its economic toll on American consumers and markets had been severe, with the closure of the Strait of Hormuz, a narrow chokepoint at the mouth of the Persian Gulf that handles one-fifth of global oil and liquefied natural gas (LNG) shipments, disrupting energy supplies worldwide.

Strait of Hormuz Under Iranian Management

Beyond Wall Street, the oil market told its own story. Brent crude futures fell $3.58, or 4.10%, to $83.75 a barrel. U.S. benchmark West Texas Intermediate (WTI) crude dropped $4.01, or 4.72%, to $80.87, its lowest print since March 2026.

According to a draft of the peace agreement reported by ICIS, the Strait of Hormuz will reopen within 30 days, but management of the waterway will remain under Iranian control. The draft also includes a 60-day ceasefire, with further talks on Tehran's nuclear program and discussions around sanctions relief to continue in parallel.

This arrangement puts Iran back in a position of operational authority over the world's most consequential energy chokepoint. The strait's importance is not abstract: roughly one-fifth of global oil and LNG flows pass through its 21-mile-wide navigable channel each day. For American consumers who spent months absorbing elevated fuel costs during the conflict, the deal's structure means price relief at the pump is real but flows through a corridor that Tehran now explicitly manages.

The de-escalation had been building in stages. On June 8, 2026, Iran announced an 'end of military operations' against Israel, and Wall Street rallied on the news as oil pulled back from recent highs. By June 11, Trump pulled back threatened military strikes against Iran, citing ongoing discussions for a negotiated settlement, and the S&P 500 climbed 1.8% that day alone as U.S. oil slid toward $86 a barrel.