Global markets surged and oil prices plunged on Wednesday after reports emerged that Washington and Tehran were nearing a framework agreement to end the war and eventually reopen the Strait of Hormuz.
The S&P 500 closed higher by 1.5% and the Nasdaq Composite jumped 2%, with both indexes closing at record highs. The Dow Jones Industrial Average climbed more than 610 points. US crude oil fell 7% to close at $95.08 per barrel, while international Brent crude dropped 7.8% to $101.27 per barrel.
The nationwide average US retail gas price had briefly crossed $4.50 per gallon — the highest level since July 2022 — before easing following the peace reports. Since the war started, gas prices have surged more than 50% for consumers.
Despite Wednesday’s sharp drop, oil remains up more than 65% since the start of 2026. Mortgage rates also fell to their lowest level since Friday at 6.44% for a 30-year fixed-rate loan, offering some relief to homebuyers. Markets remain on edge as a final agreement has not been confirmed by either side.
