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Stocks Jump, Oil Slides on Reports of U.S. Ceasefire Offer to Iran

Markets bet on a pause in fighting to reopen the Strait of Hormuz.

Overview

  • U.S. markets rallied Wednesday after reports of a U.S. 15‑point offer to Iran, with the S&P 500 up about 1%, the Dow up roughly 575 points, and WTI crude down around 5% to about $88 a barrel.
  • The reported plan, routed to Tehran via Pakistan, seeks a ceasefire and secure passage for oil tankers through the Strait of Hormuz, a chokepoint that normally carries about one‑fifth of global oil.
  • Iran’s position remained unclear after unconfirmed Iranian media reports said Tehran would reject talks, and President Donald Trump offered mixed public signals in recent days about the war’s status.
  • Ship movements through the Strait have been largely frozen, with data showing only a handful of vessels getting through on recent days, which keeps supply risks high even as prices ease.
  • Pakistan has been passing messages between Washington and Tehran and sources said a meeting could follow, while NBC News reported the U.S. is sending more than 1,000 additional troops to the region.