Dow futures jump 900 points, oil tumbles after Trump suspends Iran attacks for two weeks: Live updates – CNBC

Stocks soared Wednesday after President Donald Trump suspended attacks on Iran for two weeks, pausing a five-week conflict that closed a crucial waterway for global energy supplies.

The Dow Jones Industrial Average ripped 1,325.46 points higher, or 2.85%, to 47,909.92. That was the benchmark’s best day since April 2025, when Trump first backed down from the severity of his initial tariff announcement.

The S&P 500 popped 2.51% to 6,782.81, and the Nasdaq Composite surged 2.80% to 22,635.00.

West Texas Intermediate crude futures tumbled more than 16% to close at $94.41 per barrel, its biggest daily drop since April 2020. International benchmark Brent for June delivery lost about 13% to settle at $94.75.

“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump posted on Truth Social. “We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”

Trump said the “double sided” ceasefire was contingent on Iran agreeing to an opening of the Strait of Hormuz.

Iran’s Supreme National Security Council has agreed to reopen the waterway for two weeks as long as all attacks are halted, according to a statement from Iran’s Foreign Minister. The statement said transit would need to be coordinated with Iran’s Armed Forces. Israel agreed to the ceasefire as well, according to media reports.

“It wasn’t much of a surprise that there was an announced reprieve in the Iranian conflict. The market has gotten much better at sniffing out” Trump’s next move, said Jay Woods, chief market strategist for Freedom Capital Markets. “The concern now is if this all too familiar ‘two-week’ timeframe is going to lead to a resolution.”

Stocks got another boost after Trump posted Wednesday that the U.S. will work with Iran to remove nuclear material from the country and that the two nations are discussing tariff and sanctions relief.

To be sure, uncertainty remains around passage through the Strait of Hormuz. On Wednesday, Iranian state news agency Fars said that oil tanker traffic through the strait has ceased following an Israeli attack on Lebanon. Iran’s parliamentary speaker Mohammad Bagher Ghalibaf also said the U.S. has already violated its two-week ceasefire agreement, underscoring the deepening distrust between the two countries.

The rally was led by stocks that have come under the most pressure since the start of the conflict. Semiconductor makers vulnerable to supply chain disruptions climbed, with the VanEck Semiconductor ETF (SMH) jumping more than 5%. Broadcom was higher by nearly 5%. Micron Technology gained more than 7%.

International markets that are more reliant on energy imports outperformed the U.S., with the iShares MSCI Emerging Markets ETF (EEM) up more than 5%. South Korea stocks surged more than 10%. Small caps, which have greater cyclical exposure, also climbed nearly 3%.

On the other hand, energy stocks that have surged since the start of the conflict faltered. Shares of Exxon Mobil and Chevron slid more than 4%, each.

The rally added to optimism the stock market has finally found a bottom after last month’s selloff, though many remain certain that the volatility is far from over given the sensitivity equities have to geopolitical headlines.

“Nothing goes up in a straight line,” said Stephen Tuckwood, director of investments at Modern Wealth Management. “But I think we’ve made a strong base here.”

— With reporting by Fred Imbert