Dow Soars Over 600 Points To Hit 52-Week High As US-Iran Deal Breakthrough Sends Stocks Soaring

The S&P 500 index gained about 1.5%, while the Nasdaq Composite surged about 2.3%.

• Trump stated in a post on Truth Social on Monday that ships are beginning to move through the Strait of Hormuz, many of them loaded with oil.
• In another post, the U.S. President said that the Iran deal would be signed on Friday this week.
• Vice President JD Vance said during an interview with CNBC on Monday that the Strait of Hormuz is expected to remain toll-free for the long term.

U.S. equities soared in Monday morning’s trade after the United States and Iran hit a new breakthrough to end the war and reopen the Strait of Hormuz.

The Dow Jones Industrial Average (DJIA) soared more than 600 points and hit a 52-week high of 51,857 before paring some of the gains. The S&P 500 index gained about 1.5%, while the Nasdaq Composite surged about 2.3%.

This comes amid an announcement by President Donald Trump on Sunday that the deal with Iran is now “complete,” while adding that he has authorized the removal of the United States’ blockade of Iran.

Trump stated in a subsequent post on Truth Social on Monday that ships are beginning to move through the Strait of Hormuz, many of them loaded with oil.

“They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine. There are other areas of travel, also!!!” he added.

Formal Signing This Week

In another post on Truth Social, Trump said the Iran deal would be signed on Friday. “With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!” he said.

Meanwhile, Vice President JD Vance said during an interview with CNBC on Monday that the Strait of Hormuz is expected to remain toll-free for the long term. He added that the agreement includes a two-step verification process, supported by sanctions and enforcement measures to ensure Iran fulfills its commitments.

Iran Remains Doubtful Of US

According to a report by Al Jazeera, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said that the distrust of the U.S. is deep-seated, dating back to the coup orchestrated in the 1950s.

“We doubt the Americans because we had previous experiences with them that go back to 1953. Since that moment, trust has gone between America and Iran, and it is deep-rooted. There is a long road for the United States to go in order to gain our trust,” he said.

Baghaei added that no agreement with the U.S. is sustainable if Lebanon’s security is threatened. He said that the deal emphasizes the end of hostilities on all fronts.

Crude Oil Prices Tumble

Crude oil prices tumbled on Monday following the announcement of the framework between the United States and Iran. U.S. West Texas Intermediate (WTI) crude futures expiring in July were down 5.14%, hovering around $80.52 a barrel. Brent crude futures expiring in August fell 4.66% to hover around $83.26 a barrel.

The United States Oil Fund ETF (USO) fell more than 4% at the time of writing, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) declined about 6%.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, gained 1.63%; the Invesco QQQ Trust ETF (QQQ) surged 2.8%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 1.13%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bearish’ territory.

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