Dow Surges Over 1,100 Points as Wall Street Recovers War Losses

U.S. stocks rebound sharply as oil prices ease, raising hopes for an end to the conflict with Iran

Mar. 31, 2026 at 6:48pm

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An extreme close-up of intricate, metal industrial machinery and equipment, representing the complex financial and energy systems impacted by the war's effects on global oil markets.As tensions over global oil supplies escalate, the financial markets brace for the impact of the ongoing conflict's disruption to energy infrastructure.NYC Today

U.S. stocks saw a major rally on Tuesday, with the Dow Jones Industrial Average surging as much as 1,100 points, as investors grew more optimistic about a potential resolution to the ongoing war with Iran. The rebound was driven by a drop in oil prices, which had previously spiked due to concerns about supply disruptions from the conflict. The S&P 500 jumped 2.5% in its best day in 10 months, while the tech-heavy Nasdaq Composite surged 3.3%.

Why it matters

The stock market's sharp swings have been largely dictated by oil prices since the start of the war, as concerns over supply disruptions and resulting inflation have weighed heavily on investor sentiment. A sustained recovery in the market could provide relief for consumers and businesses that have been squeezed by higher energy costs and economic uncertainty.

The details

The rally came as oil prices fell, with Brent crude dropping 2.8% to $104.42 per barrel and U.S. benchmark crude slipping 1% to $101.88. Analysts attributed the optimism to reports that President Donald Trump may be willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed, a critical chokepoint for global oil shipments. Further fueling the rebound was a report quoting Iran's president saying the country has 'the necessary will to end the war' under certain conditions.

  • The Dow Jones Industrial Average was up 938 points, or 2.1%, as of 2:25 p.m. Eastern time on March 31, 2026.
  • Oil prices spiked from around $70 per barrel to as high as $119 per barrel since the start of the war.

The players

Donald Trump

The former U.S. president who reportedly told aides he's willing to end the military campaign against Iran.

Masoud Pezeshkian

The president of Iran, who was quoted as saying the country has 'the necessary will to end the war' under certain conditions.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

What’s next

Oil prices could quickly revert to a spike if tankers carrying crude can't get through the Strait of Hormuz easily, as Iran has attacked oil tankers in the region during the conflict.

The takeaway

The stock market's volatile swings have been largely driven by the war's impact on oil prices and the resulting inflation concerns. A sustained recovery in the market could provide relief for consumers and businesses, but the situation remains fragile and dependent on the course of the conflict.