U.S. Stocks Approach All-Time High As Oil Prices Tumble

U.S. stocks surged, closing in on record highs as oil prices dropped further amid optimism that a ceasefire between Israel and Iran will help preserve global crude supplies.

U.S. benchmark crude fell 6% to settle at $64.37 per barrel, while Brent crude posted a similar decline.

The S&P 500 climbed 1.1%, building on gains seen earlier across Europe and Asia, after President Trump announced a “complete and total ceasefire” between the two nations. Stan Choe, David McHugh, and Elaine Kurtenbach reported for the Associated Press (AP).

The S&P 500 is now within 0.8% of its February all-time high, after having dropped by nearly 20% earlier this spring.

The Dow Jones Industrial Average rose 507 points, or 1.2%, while the Nasdaq composite jumped 1.4%.

The biggest movements were in the oil markets. U.S. benchmark crude fell 6% to settle at $64.37 per barrel, while Brent crude posted a similar decline. Fears had mounted that the Israel-Iran conflict could threaten oil supply routes, particularly through the Strait of Hormuz—a chokepoint for 20% of the world’s oil shipments.

Oil prices began falling Monday after Iran’s apparent limited retaliation to U.S. involvement in the war avoided targeting energy infrastructure.

Despite continued hostilities past a ceasefire deadline, markets took Trump’s announcement as confirmation that a truce was holding. Oil prices have now fallen below pre-conflict levels.