**Stock Markets Surge Following Trump’s Announcement on Iran**
*By John Power, Published on 12 June 2026*
Global stock markets experienced a significant upswing on Thursday, driven by U.S. President Donald Trump's announcement that he had called off planned military strikes against Iran and indicated that a peace deal with Tehran was on the horizon. This news marked a pivotal moment for investors, leading to a notable recovery on Wall Street after a three-day streak of losses.
The S&P 500, Wall Street's benchmark index, closed nearly 1.8 percent higher, marking its largest single-day gain since April. The tech-heavy Nasdaq Composite saw an even more substantial increase, jumping 2.5 percent, while the Dow Jones Industrial Average, which includes many of the largest U.S. companies, gained approximately 1.9 percent.
The positive momentum continued into Friday, with stock markets across the Asia Pacific region also reporting gains. In South Korea, the Kospi index surged more than 8 percent during morning trading, making it the best-performing major index of the year. Japan's Nikkei 225 experienced a rise of up to 4 percent, while Taiwan's TAIEX and Australia's ASX 200 gained about 2.4 percent and 1.8 percent, respectively. Additionally, the Hang Seng Index in Hong Kong was up more than 1 percent.
In the commodities market, Brent crude oil prices fell by about 1 percent, dipping below $89.50 a barrel. This decline was attributed to growing optimism regarding the potential for a return to stability in the Strait of Hormuz, a crucial waterway through which approximately one-fifth of the world's energy supplies are transported.
President Trump’s announcement on Thursday suggested that a formal agreement to end hostilities with Iran could be finalized as soon as this weekend. "We just made a great settlement of the war with Iran… subject to finalization of documents," Trump stated during a press conference at the White House. While Iran has not officially confirmed Trump's assertions, a spokesman for the Iranian Ministry of Foreign Affairs indicated that a memorandum of understanding with the U.S. is currently "under consideration."
Market analysts have noted that for the current rally to be sustainable, investors will be looking for concrete evidence of a signed deal and a full reopening of the Strait of Hormuz. Khoon Goh, head of Asia research for ANZ Bank, emphasized that these conditions are critical for extending the market gains.
Fabien Yip, a market analyst at IG Group in Sydney, remarked that the market rally reflects a significant easing of geopolitical risks, alongside anticipation for the upcoming market debut of SpaceX, which is expected to be the largest initial public offering (IPO) in history. Yip described the recent market activity as a healthy reset following a rapid advance, suggesting that this consolidation could enhance the longevity of the rally.
As the situation develops, investors remain cautiously optimistic, closely monitoring both the geopolitical landscape and the potential implications of the proposed peace deal with Iran. The coming days will be pivotal in determining whether the current market enthusiasm can be sustained or if it will be tempered by the realities of international relations.