US Stock Market Rallies as Oil Prices Plunge on Ceasefire Hopes Between Iran and Israel
Wall Street saw strong gains on Tuesday, June 24, as investor confidence was lifted by signs of easing tensions in the Middle East. A tentative ceasefire between Iran and Israel has helped calm global markets, sending oil prices sharply lower for the second day in a row.
The Dow Jones Industrial Average surged 507 points, or 1.19%, marking a robust recovery. Meanwhile, the S&P 500 rose by 1.11%, bringing it within 1% of its 52-week high. Tech-heavy Nasdaq Composite led the charge with a 1.43% gain, as risk appetite returned to the market.
Oil Prices Dive for Second Straight Day
While equities climbed, oil prices extended their steep decline. West Texas Intermediate (WTI) crude dropped nearly 15% across two sessions, settling near $64 per barrel. At the same time, Brent crude hovered just above $67 per barrel.
This sharp pullback in oil is being driven by President Donald Trump’s efforts to maintain oil flow from Iran, even after a fragile ceasefire agreement was brokered between Tehran and Israel. A day earlier, U.S. crude had already fallen by over 7%, and Tuesday’s decline pushed the two-day loss to 13% highlighting the market’s sensitivity to geopolitical developments.
Trump Signals Support for Continued Oil Trade
Adding to the downward pressure on oil, President Trump announced that China could continue purchasing Iranian oil, and expressed his desire for increased U.S. oil exports. These statements sent a clear signal that Washington is aiming for market stability over sanctions, further calming fears of a prolonged supply disruption.
European Defense Ties: Turkey Seeks Eurofighter Jets
In related geopolitical news, Turkish President Recep Tayyip Erdogan is planning to meet with German Chancellor Friedrich Merz during the NATO summit in The Hague, according to Turkish government sources. The meeting is expected to focus on Turkey’s plan to purchase Eurofighter Typhoon jets, which are manufactured by a European consortium.
Turkey is also waiting for delivery of spare parts for key military assets including Leopard battle tanks, German-made submarines, and other defense systems pointing to broader strategic cooperation between the two nations.
Tuesday’s market rally and the continued decline in oil prices underscore how quickly sentiment can shift based on international developments. With peace talks progressing and global oil supply concerns easing, investor attention is now turning to broader economic indicators and earnings reports. Whether this momentum can be sustained will depend on how well the ceasefire holds and how global energy markets stabilize in the days ahead.
