The Dow Jones Industrial Average closed at an all-time high of 51,671.03, surging 468.77 points in a single session. The catalyst was President Trump’s announcement of a deal to end the war with Iran, a conflict rattling global markets since late February.
Oil prices dropped roughly 5% to around $80 per barrel, a sharp retreat from peaks near $120 when the Strait of Hormuz was effectively shut down. Bitcoin climbed to near $66,000, and bonds strengthened.
The agreement commits both nations to reopening the Strait of Hormuz and lifting the US naval blockade on Iranian ports. Roughly 20% of the world’s oil supply passes through the strait daily. A formal signing ceremony is scheduled for June 19 in Switzerland, with Pakistan and Qatar mediating negotiations.
The conflict began on February 28, 2026, when US and Israeli airstrikes struck Iranian targets. The rapid escalation spiked energy costs, disrupted shipping lanes, and pressured global supply chains. The normalization of oil supply should begin relatively quickly if the deal holds, though markets are pricing in success, creating substantial downside risk should negotiations collapse at the last minute.