Iran war ceasefire sends oil prices tumbling and stocks soaring

Stocks roared higher after President Trump announced a two-week ceasefire with Iran. Oil prices fell sharply, and gas prices are expected to follow.

Stocks roared higher Wednesday, after President Donald Trump announced a two-week ceasefire between the United States and Iran, bringing a pause to the war that started more than a month ago.

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Official statements from Washington and Tehran, however, did not offer a clear picture of what the future of shipping traffic in the Strait of Hormuz would look like. Despite the unanswered questions and conflicting comments throughout the afternoon, markets had an overwhelmingly positive response to the news.

The S&P 500 closed up 2.5%. The Nasdaq Composite ended higher by 2.8%, the Dow jumped 1,325 points and the Russell 2000 surged 2.9%.