Stocks Rally Worldwide as Oil Prices Ease on Iran War Hopes

Investors see potential for ceasefire, but volatility remains a concern

Apr. 1, 2026 at 2:20pm

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Stocks around the world climbed on Wednesday as oil prices eased on hopes that the war between the U.S. and Iran could be nearing an end. The S&P 500 rose 0.6%, adding to its biggest single-day gain since last spring, while markets in Europe and Asia also saw significant increases. Oil prices fell back toward $100 per barrel after President Trump said Iran had asked for a ceasefire, though prices remain elevated from pre-war levels.

Why it matters

The war with Iran has been a major source of volatility in global financial markets, with concerns that prolonged conflict could disrupt oil and natural gas supplies from the Persian Gulf and lead to a spike in inflation. Any signs of a potential resolution or ceasefire have been closely watched by investors hoping to see a return to more stable economic conditions.

The details

Stocks rose across the board, with the Dow Jones Industrial Average up 292 points and the Nasdaq composite 1% higher. Oil prices fell after Trump said Iran had requested a ceasefire, though prices remain well above pre-war levels. The White House said Trump will deliver a public address on the Iran war on Wednesday evening. Despite the optimism, investors remain cautious, as similar bouts of hope have been quickly undercut in the past.

  • On Wednesday, President Trump said Iran 'has just asked the United States of America for a CEASEFIRE!'
  • Trump had said the night before that the U.S. military could end its offensive in two to three weeks.

The players

Donald Trump

The President of the United States, who has made statements about the potential for a ceasefire or end to the war with Iran.

Iran

The country engaged in an ongoing conflict with the United States, which has disrupted global oil and gas supplies and contributed to market volatility.

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What they’re saying

“'We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!'”

— Donald Trump, President of the United States

“'It's worth thinking through how markets might fare if the war were to end 'very soon,'' he wrote. 'Do markets have further to recover if sentiment continues to improve? The answer is almost certainly yes.'”

— Thomas Mathews, Head of Markets, Asia Pacific at Capital Economics

What’s next

The White House said Trump will deliver a public address Wednesday evening on the Iran war, which could provide further clarity on the potential for a ceasefire or resolution to the conflict.

The takeaway

While the latest signs of hope for an end to the Iran war have lifted global financial markets, investors remain cautious about the potential for continued volatility, as similar optimistic signals have been quickly undercut in the past. The outcome of the conflict will have significant implications for oil and gas supplies, inflation, and the broader economic outlook.