Home Business Markets Stocks Surge as Israel-Iran Te...

Stocks Surge as Israel-Iran Tensions Ease, Oil Prices Fall

Markets

Business Honor
17 June, 2025

Stocks rebound as oil prices drop and investors hope Israel-Iran conflict stays contained.

Stocks bounced back on Monday after falling last week due to rising tensions between Israel and Iran. Investors felt a bit more hopeful that the conflict might not grow any larger, which helped boost the markets. Oil prices, which had jumped sharply over the weekend, also dropped in bringing some relief.

The Dow Jones Industrial Average closed at 42,515.09, up 317 points, or 0.75%. The S&P 500 rose by 0.94% to 6,033.11 and the NASDAQ climbed 1.52%, ending the day at 19,701.21. Oil prices fell more than 1% with West Texas Midway crude settling at $71.77 per barrel, down from overnight highs above $77. Gold prices had risen late last week as investors looked for safer assets.

The recent conflict started after Israel launched a strike on Iran on Friday. Iran responded with missile attacks, raising fears of a bigger war. But according to reports on Monday, Iran has requested assistance from a number of nations, including Saudi Arabia, in promoting a truce. That gave investors some hope the situation may not spiral further.

Despite this, fighting continued into a fourth day, with both countries targetin g energy facilities. Iran even threatened to close a vital oil shipping route, the Strait of Hormuz. Tech stocks performed well. All the “Magnificent Seven” rose, including Tesla (up over 1%) and Meta (up nearly 3%) after news about ads coming to WhatsApp. Palantir also gained around 3%, as it's seen as benefiting from global tensions.

The Federal Reserve, which is expected to maintain stable interest rates this week, is another factor that investors are watching. Slower-than-expected manufacturing data released Monday added to the cautious mood.