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Stocks Surge and Oil Slides on Hopes of U.S.–Iran Breakthrough

Hopes for a U.S.–Iran outline signal a possible Hormuz reopening.

Overview

  • Global stocks jumped Wednesday after the U.S. suspended its Hormuz naval escort and Axios reported a draft, one‑page U.S.–Iran protocol with a response expected from Tehran within 48 hours.
  • Brent and WTI fell roughly 5% to about $104 and $96 as traders bet on lower supply risk if the strait reopens.
  • Trump warned he would bomb Iran if talks fail, yet he called a deal “very possible,” and Pakistan’s prime minister said he had good hope as a mediator.
  • U.S. markets set fresh records as strong earnings and AI demand lifted major tech names, with AMD up about 19% while the Nasdaq and S&P 500 advanced.
  • Key facts remain disputed, as U.S. Central Command said two U.S.-flagged ships crossed the strait while Iran’s Revolutionary Guards denied any merchant transits and claims of attacks drew U.S. denials.