US Equities Surge as US-Iran Agreement Signals Stability for Global Energy Markets

The S&P 500 gained 1.7 percent, while the Nasdaq climbed 3.1 percent amid easing geopolitical tensions.

Published On 16 Jun 202616 Jun 2026

US equity markets surged Monday following a tentative agreement to end the US-Israel conflict with Iran, sparking optimism that energy supply chains—heavily disrupted by months of volatility in the Strait of Hormuz—will soon stabilize.

The S&P 500 advanced 1.7 percent, bringing the index close to its all-time peak. Meanwhile, the blue-chip Dow Jones Industrial Average rose 0.9 percent to close at a record high.

The tech-heavy Nasdaq Composite jumped 3.1 percent, bolstered by a massive 19.6 percent gain from SpaceX. The company’s historic market debut on Friday not only marked the largest IPO in history but also established Elon Musk as the world’s first trillionaire.

In the energy sector, Brent crude futures fell nearly 5 percent to just above $83 a barrel, marking the lowest price point since the conflict first began.

Asian markets remained largely stagnant on Monday morning, following a surge the previous day triggered by President Donald Trump’s announcement of the deal with Tehran. As of 01:30 GMT, Japan’s Nikkei 225 dipped 0.01 percent, and South Korea’s Kospi—this year’s top-performing major index—fell 0.06 percent. Taiwan’s TAIEX rose 0.2 percent, while Hong Kong’s Hang Seng Index edged down 0.07 percent.

Jay Goldberg, a senior tech equities analyst at Seaport Research Partners in Chicago, noted that the deal has shifted investor sentiment toward a higher risk appetite.

“To put it simply, the prevailing tension was between strong AI investment and the risks of an active war,” Goldberg told Al Jazeera. “With the war seemingly over, that negative pressure has vanished, and investors are now more comfortable taking on risk.”

Despite the optimistic framework, analysts warn that full normalization of energy flows may take months. The International Shipping Chamber reports a backlog of approximately 500 vessels awaiting passage through the Strait of Hormuz—a critical artery that typically handles one-fifth of the world’s oil and liquefied natural gas (LNG) supplies—while efforts continue to clear the waterway of Iranian naval mines.

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