US Stock Market Rallies as US-Iran War Tensions Ease
US Stock Market Indicates Positive Start to Wednesday's Trade Amid Renewed Hopes for Iran War End
The US stock market is indicating a positive start to Wednesday's trade, April 1, on renewed hopes that the Iran war could end soon, while a drop in crude oil prices is also aiding sentiment. Futures of the three key indices—the Dow Jones Industrial Average, S&P 500, and Nasdaq—were trading higher in the range of 0.3-0.7%.
In the previous session, all three benchmark indices registered one of their biggest single-day jumps in over a year amid positive developments in the Middle East. The recent statements by US President Donald Trump are being interpreted more positively by investors, signaling a willingness to end the war.
The war, which has been ongoing for five weeks, has weakened US relations with NATO, and Trump is reportedly considering pulling the US out of the 77-year-old defensive alliance. Trump reportedly said on Tuesday that American forces would leave Iran in "two or three weeks," adding that the US would end its involvement in the war "whether we have a deal or not," and shift responsibility for the Strait of Hormuz to countries that rely on it for oil and shipping.
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| Index | Previous Session's Gain | Current Session's Gain |
|---|---|---|
| Dow Jones Industrial Average | 2.5% | 0.5% |
| S&P 500 | 2.2% | 0.4% |
| Nasdaq | 3.1% | 0.3% |
Tehran said there are currently no formal talks underway with the US but reportedly signalled a willingness to end the war if its conditions are met. The war, which has cost billions of dollars for the Trump administration and pushed gas prices above an average of $4 a gallon, has also led to millions of people marching across all 50 states in "No Kings" protests in late March 2026.
Meanwhile, Federal Reserve Chair Jerome Powell said on Monday that he sees inflation expectations as well anchored despite rising energy prices, suggesting the central bank may not need to respond with higher interest rates, CNBC reported.
Amid hopes of de-escalation, crude oil prices have sharply pulled back from recent highs. Brent crude, the international benchmark, fell 5.4% in early trade to hit a day's low of $98 per barrel. US benchmark crude dropped 5% to $96.56.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Brent Crude Price | March Gain | Previous Session's Price | Current Session's Price |
|---|---|---|---|
| $100 | 43% | $103.56 | $98.00 |
| US Benchmark Crude Price | $96.56 |
Crude oil prices remained highly volatile throughout March, as the Strait of Hormuz—through which roughly 20% of the world's oil supply passes—has effectively been shut since the US-Israel escalation against Iran in late February.
Investor Takeaway
Investors should be cautious of potential market volatility due to ongoing global tensions.
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