Stocks Surge To Record Highs On Hopes For US-Iran Deal Over Key Shipping Route

Major U.S. stock indexes climbed to fresh record levels Tuesday morning after Treasury Secretary Scott Bessent said the United States and Iran could be close to an agreement that would reopen the Strait of Hormuz to commercial shipping.

What Bessent Said

Speaking in a television interview, Bessent said talks are underway with Iran to allow free passage for commercial vessels through the strait, adding there’s a chance a deal could be reached within a day or two that would move the region toward a more stable footing.

Markets React Sharply

The Dow Jones Industrial Average jumped to an all-time high above 53,900 before giving back some gains, last trading around 53,178. The S&P 500 also touched a new record, trading near 7,700, up roughly 1.5% on the session.

The Nasdaq Composite climbed over 10%, changing hands around 25,913. The rally has been broad-based, with technology and AI-related names leading gains after a mixed run of big tech earnings reports.

Oil Prices Fall On Reopening Hopes

Crude oil prices dropped sharply on the news, with U.S. benchmark futures down more than 5% to trade near $75 a barrel, and international benchmark futures falling over 4% to just under $80 a barrel.

Bessent said he expects energy prices to ease further once the strait reopens, noting hundreds or even thousands of ships are currently waiting in the region to move through. He added the impact would extend beyond energy to fertilizer, refined products, and industrial gases, potentially triggering a broader relief rally in commodity prices.

What Analysts Are Watching

One major investment bank said it expects oil prices to hold in an $80 to $90 range until there’s more clarity on whether a deal materializes or tensions escalate further between the two countries.