Markets Surge as U.S.-Iran Deal Reports Send Oil Tumbling

CNBC reported Wednesday that global markets surged sharply after reports emerged of a possible U.S.-Iran peace agreement. The news sent crude oil into freefall and lifted equity futures across the board.

Futures linked to the Dow Jones Industrial Average climbed roughly 544 points, or 1.1%, in early trading. S&P 500 futures added 0.9%, while Nasdaq 100 futures advanced 1.6%.

Oil Takes the Sharpest Hit

Crude prices bore the brunt of the peace optimism. West Texas Intermediate futures plunged nearly 9% to around $93 per barrel. International Brent crude fell approximately 7.7% to trade near $101. Traders rapidly unwound positions built around sustained conflict and Strait of Hormuz supply disruption.

President Donald Trump separately announced a pause to “Project Freedom,” a U.S. initiative designed to escort vessels through the Strait of Hormuz. He cited meaningful progress toward a comprehensive settlement with Iran as the reason for suspending the program.

What the Reported Deal Includes

Axios, citing sources familiar with the negotiations, described a draft one-page, 14-point memorandum. Under the reported framework, Iran would commit to halting nuclear enrichment. In return, Washington would lift economic sanctions and release billions in frozen Iranian assets. Both sides would also agree to reopen the Strait of Hormuz to commercial shipping.

An Iranian foreign ministry spokesperson confirmed to CNBC that Tehran is actively evaluating the U.S. proposal, though no final agreement has been announced.

How Markets Got Here

Tuesday’s session had already delivered strong gains. Solid corporate earnings and a continuing ceasefire between the two nations underpinned broad buying. RBC Capital Markets head of U.S. equity strategy Lori Calvasina told CNBC’s Closing Bell Overtime that the market is “climbing a wall of worry,” and that AI-driven earnings momentum remains a meaningful buffer for S&P 500 profit estimates.

Chips Lead the Equity Surge

Chipmaker Advanced Micro Devices surged 16% after posting a first-quarter earnings beat and issuing a stronger-than-expected second-quarter outlook. The move lifted the wider semiconductor sector. The VanEck Semiconductor ETF jumped 3.4%, and Intel added nearly 6%.

European markets also rallied hard. The pan-European Stoxx 600 climbed 2.1%, with London, Paris, and Frankfurt each rising more than 2%. Government bond yields fell in tandem, with 10-year U.K. gilt yields dropping more than 8 basis points to just under 5%.

Asian markets joined the advance, with South Korea’s Kospi closing at a fresh record high.

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