Stocks Surge on U.S.-Iran Ceasefire News, but Uncertainty Remains

Oil prices plunge, but gas prices may take longer to reflect the changes

Apr. 8, 2026 at 1:56pm

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Stocks roared higher on Wednesday after President Donald Trump announced a two-week ceasefire between the U.S. and Iran, bringing the more than month-long war to a pause. Oil prices plunged, but experts warned that the market may be getting ahead of itself as questions remain about the future of shipping traffic in the Strait of Hormuz.

Why it matters

The ceasefire announcement had a significant impact on global markets, with stocks, oil prices, and Treasury yields all reacting strongly. However, the long-term implications of the conflict and the sustainability of the ceasefire remain uncertain, which could lead to continued volatility in the markets.

The details

U.S. crude oil prices plunged 18% in morning trading on Wednesday to around $92 per barrel, while international Brent crude oil tumbled 16% to around $90. The drop in oil prices is expected to eventually lead to lower gas prices for consumers, but analysts warned that it may take some time for the changes to be reflected at the pump. Meanwhile, the S&P 500 surged 2.5% at the opening bell, the Nasdaq Composite soared 3.1%, and the Dow spiked 1,400 points. Strategists at JPMorgan Chase's trading desk said that the market could rise even further as "euphoria returns." However, other experts cautioned that the market may be getting ahead of itself, as the ceasefire could still fall apart and there is still an initial inflation shock to contend with.

  • On February 28, the U.S. launched strikes on Iran, leading to a month-long war.
  • On April 8, 2026, President Donald Trump announced a two-week ceasefire between the U.S. and Iran.

The players

President Donald Trump

The President of the United States who announced the two-week ceasefire between the U.S. and Iran.

JPMorgan Chase

A major investment bank whose trading desk strategists said the market could rise further due to "euphoria" over the ceasefire news.

Krishna Guha

The Evercore vice chairman and head of economics who cautioned that the market may be getting ahead of itself and that the ceasefire could still fall apart.

Patrick De Haan

A GasBuddy analyst who predicted that gas prices may begin to ease in the next 36 hours and could fall one to three cents per day by the weekend.

Delta Air Lines

An airline that said it expected to spend an additional $2 billion more on jet fuel in the current quarter than it had previously planned due to the war.

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What’s next

Negotiations between the U.S. and Iran are expected to continue later this week, with the future of shipping traffic in the Strait of Hormuz remaining a key issue. Analysts will be closely watching to see if the ceasefire holds and if a more durable agreement can be reached.

The takeaway

The ceasefire announcement has had a significant impact on global markets, with stocks, oil prices, and Treasury yields all reacting strongly. However, the long-term implications of the conflict and the sustainability of the ceasefire remain uncertain, which could lead to continued volatility in the markets. Consumers may see some relief at the gas pump in the coming days, but the full impact on energy prices will depend on the outcome of the ongoing negotiations.