Stock prices have rallied to record highs after the Trump administration signaled that a deal with Iran could come ‘today or tomorrow.’
The Dow Jones Industrial Average and the S&P 500 hit record highs on Tuesday, both jumping approximately 1.7 percent as of Tuesday afternoon.
At the same time, the Nasdaq rose approximately 2.6 percent.
The soaring US stock prices come after President Donald Trump’s Treasury Secretary Scott Bessent indicated early on Tuesday that a deal between Tehran and Washington may be imminent.
‘We are in talks with the Iranians,’ Bessent told CNBC in an interview.
‘There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.’
The price for a barrel of West Texas crude oil plummeted after the announcement, dropping around 6 percent from $80 per barrel before the market opened to around $75.80 on Tuesday afternoon.
Trump over the weekend warned that a massive attack was in store for Iran, but he later called off the planned attack, saying he wanted to allow for negotiations to resume.
Treasury Secretary Scott Bessent told CBNC that a US-Iran deal on the war could be struck ‘today or tomorrow.’ His remarks seemingly gave investors hope, as soon after stock prices spiked and oil prices dropped
Bessent said there are hundreds or potentially over a thousand ships wishing to transit the Strait of Hormuz
Trump said he had planned to strie Iran hard on Sunday but that he canceled that offensive after speaking with leaders of countries across the Middle East who told the President that he should opt for a deal instead
Bessent said Trump’s threat of overwhelming force brought the Iranian delegation back to the negotiating table after the latest memorandum of understanding, signed June 17, fell through after Iran fired missiles at US forces.
‘We’ve seen President Trump last week threaten what would have been the largest military campaign since World War II against the Iranians, and now because of that we are in talks with the Iranians,’ Bessent told CNBC.
Trump opted to call off the attack after speaking with the leaders of allied countries in the region.
‘I was asked to by Saudi Arabia, the UAE, by Qatar, and by Iran to hold off strikes. It would have been a massive attack,’ Trump said on Sunday about pausing the offensive.
‘When the allies asked to call it off, you gotta say, ‘Well, let’s see.’ And the reason why they asked is because I think there’s a deal.’
Bessent noted on Tuesday that halting the strikes will help more ships transit the Strait of Hormuz and get more goods to global markets, an effort that he expects will bring down prices for consumers in the US.
‘It’s not just energy. It’s fertilizer, it’s refined products, it is the various industrial gasses,’ Bessent shared. ‘We could see a big relief trade as those prices go down.’
Still, Trump has repeatedly signaled that US negotiators had traction on deals that did not materialize, sending stock prices soaring on the hopes of a deal just for them to later crash as the talks failed to produce results.
Zolfaghar Bassir missiles are displayed by the armed forces as an anti-Trump banner reads in English and Farsi, ‘We will kill you,’ is seen in a temporary exhibition in Tehran
An explosion erupts following strikes near Azadi Tower close to Mehrabad International Airport in Tehran on March 7, 2026
Military and intelligence officials have warned that US stockpiles of offensive and defensive weapons are dwindling
In the background of Trump’s threats to restart a wider conflict are concerns about the Pentagon’s ability to sustain fighting in the Middle East.
The US Army has burned through nearly its entire arsenal of offensive precision missiles during its five-month war with Iran, three sources familiar with the data have said.
The officials, granted anonymity to discuss sensitive US military matters, told Reuters that the stocks of Army Tactical Missile Systems (ATACMS) and Precision Strike Missiles (PrSM) have dwindled to staggering new lows.
All three sources expressed concern that the low stockpiles could hamper the US ability to fend off Russia, China and other adversaries.
Another major concern is the supply of US interceptor missiles used to defend troops in the region from incoming Iranian missile and drone strikes.
Chairman of the Joint Chiefs General Dan Caine has reportedly warned the President that US troops in the region face heightened risks due to the low supply of defensive interceptor rounds.
The Pentagon has said that 18 US service members have died during operations in the Middle East since February, while over 100 have been injured.
Over 3,400 people in Iran have been killed by US-Israeli strikes since February 28, the nation’s Ministry of Health reported in June, and more than 26,500 have been injured.
