Wall Street Strengthens After US-Iran Peace Signals, Oil Prices Plunge

NEW YORK, KOMPAS.com – The United States stock exchange closed higher on Monday (23/3/2026) local time, after signals emerged of easing conflict in the Middle East following talks between the US and Iran. This strengthening occurred after US President Donald Trump announced a delay in attacks on Iranian energy infrastructure and revealed constructive communication between the two countries. The sentiment was immediately welcomed positively by investors. Citing CNBC on Tuesday (24/6/2026), the Dow Jones Industrial Average surged 631 points or 1.38% to 46,208.47. Meanwhile, the S&P 500 rose 1.15% to 6,581.00, and the Nasdaq Composite strengthened 1.38% to 21,946.76. Previously, stock futures contracts had indicated continued weakness due to the oil price surge and uncertainty over the Iran conflict. However, the market direction reversed sharply after Trump’s statement. During intraday trading, the three major indices recorded gains of more than 2%. The Dow Jones Industrial Average even surged more than 1,100 points or about 2.5%. Meanwhile, the Nasdaq Composite rose 2.5%, and the S&P 500 strengthened 2.2%. In his statement, Trump said the talks with Iran open the possibility of a comprehensive resolution to the conflict. He also instructed a delay of all attacks on power plants and Iranian energy infrastructure for five days, while awaiting negotiation developments. “I am pleased to report that the United States and the country of Iran, in the last two days, have held very good and productive talks regarding a full and comprehensive resolution of our conflict in the Middle East,” Trump said. He added that both countries have the desire to reach an agreement and plan to continue communication in the near future. Nevertheless, market optimism was somewhat restrained after Iranian state media stated there were no direct talks with the US. Baird investment strategy analyst Ross Mayfield said the current market movement more reflects the direction of the US government’s policy rather than certainty of conflict resolution. “Today’s market movement more reflects the direction the government wants to take. However, I am quite sceptical that something can be resolved immediately this week to truly return to normal, given the various complications,” he told CNBC. He added that many factors remain uncertain, from Israel’s interests, Iran, to Gulf countries, as well as potential structural damage to LNG export facilities, crude oil, and refineries. “Is there structural damage to energy facilities that could permanently change oil prices and keep them high even if the conflict ends?” he continued.