Wall Street hits records on 60-day Iran truce hopes, but Trump approval and fresh strikes cloud outlook
Hopes for a 60-day extension of the US-Iran ceasefire drove the S&P 500 and Nasdaq to record closes, though President Trump has not yet signed off and new Centcom-confirmed strikes underscore the fragility of the diplomatic opening.
Markets rally on Axios truce report
Wall Street surged on Thursday after Axios reported that the United States and Iran had agreed on a declaration of principles to extend their ceasefire by 60 days. The broad S&P 500 and the tech-heavy Nasdaq both closed at all-time highs. The report, citing two US officials, noted that President Donald Trump must still grant his final approval before the extension takes effect.
The duration was set at 60 days.
Earlier in the session, the mood had been dampened by confirmation from US Central Command (Centcom) of fresh American strikes on Iran, which Centcom described as a response to Iranian counter-attacks that violated the existing truce between the warring parties.
Oil and European equities react
Brent crude, the international benchmark, fell to $94 per barrel following the Axios report, reversing an intraday gain of up to three percent. The German Dax index clawed back a portion of its losses on the news, closing 0.5 percent lower at 25,089 points after touching 25,054 earlier in the day. The tentative optimism was tempered by the overnight military exchanges, which had initially erased short-lived hopes for a swift diplomatic breakthrough.
- Overnight: New US strikes on Iran and Iranian counter-attacks on US military bases
- Wall Street pre-market: Weaker opening signaled amid Centcom confirmation of strikes
- Axios reports US and Iran agreed on 60-day ceasefire extension; Dax trims losses
- Brent crude falls to $94/barrel, reversing up to 3% intraday gain
- S&P 500 and Nasdaq close at record highs; Dax closes 0.5% lower at 25,089
Fragile diplomacy and military reality
Centcom’s Thursday statement confirmed new US attacks on Iran and condemned Iranian counter-strikes on American military bases as a breach of the ceasefire. The Axios report also indicated that negotiations over Iran’s nuclear program are expected to commence alongside the truce extension. However, traders and analysts remain cautious, noting that the fundamental situation around the Strait of Hormuz has not changed and that previous reports of an imminent deal have been quickly contradicted by opposing headlines.
Broader market context
Beyond geopolitics, the Wall Street session found additional support from lower-than-expected inflation data and several significant positive earnings surprises, according to market commentator Markus Koch. These factors helped reverse a pre-market tilt toward a weaker open. Still, the dominant narrative remained the on-again, off-again signals from the Middle East, with investors awaiting concrete confirmation that President Trump has signed off on the 60-day framework.
