While oil prices decreased, US stocks increased as hopes that the ongoing conflict with Iran might soon end grew.

After Iran’s president, Masoud Pezeshkian, indicated that the nation has the “necessary will” to end the war with the United States and Israel—as long as certain requirements are fulfilled, such as assurances against future aggression—market sentiment improved.

The Dow Jones Industrial Average surged 2.5 percent and gained more than 1,125 points to close at 46,341.51 as a result of his remarks, sparking a powerful rally on Wall Street.

“This is the first concrete communication coming from Iran that feels verifiable,” said Art Hogan of B. Riley Wealth Management. “The market has been waiting for positive news after several weeks of decline.”

Despite the optimism, Israeli Prime Minister Benjamin Netanyahu maintained that military operations against Tehran were not over, reaffirming his commitment to dismantle Iran’s leadership.

The shift in tone from Iran also impacted the oil market, which has been highly sensitive since the conflict began. Brent crude futures fell 3.2 percent to $103.97 per barrel, while West Texas Intermediate dropped 1.5 percent to $101.38.

Earlier gains in US and European markets were also supported by reports that President Donald Trump was open to ending the war even if the Strait of Hormuz remained closed.

However, concerns about global energy supply persist. Analysts warn that Asia could bear the brunt of the crisis, with high oil prices continuing to strain economies.

“We think Asia will, for now, be the ones suffering the most,” said Jean Maynier, president of maritime analytics firm Kpler.

Energy costs remain a major concern globally. In the United States, average gasoline prices have risen above $4 per gallon for the first time since 2022, increasing pressure on policymakers to address rising fuel costs.

European stocks also closed higher despite fresh data showing a spike in inflation across the eurozone, driven largely by surging energy prices.