Trump says Iran to scrap nuclear program; stocks hit record highs

US markets rallied sharply on Friday after Iran declared the Strait of Hormuz fully open and US President Donald Trump signaled progress toward a broader agreement to end hostilities in the region.

Trump signals progress on Iran deal

Trump said Iran had agreed to suspend its nuclear program indefinitely, while also confirming that Tehran would not receive any frozen US funds.

Speaking in a phone interview, the president said a deal to end the conflict—sparked by US and Israeli actions against Iran in late February—is “mostly complete.”

“Most of the main points are finalized. It’ll go pretty quickly,” Trump said.

He added that talks over a lasting agreement would “probably” take place this weekend, though he has yet to decide who will lead the US delegation. Trump indicated he may travel to Pakistan, which hosted the last round of negotiations, saying, “I may.”

Vice President JD Vance previously led discussions with Iranian officials, and Trump said he is considering sending him again alongside Jared Kushner and envoy Steve Witkoff.

The president also dismissed suggestions that any nuclear moratorium would be time-bound, stating it would last “No years, unlimited.”

Iran has not confirmed Trump’s claims regarding its nuclear program, though it has acknowledged the reopening of the Strait of Hormuz.

Markets rally as Hormuz reopens

Equities surged after Iran announced that the critical shipping route would remain open during a 10-day ceasefire linked to tensions involving Israel and Lebanon.

The Dow Jones Industrial Average jumped 1,049 points, or 2.2%, while the S&P 500 rose 1.4% to cross the 7,100 mark for the first time. The Nasdaq Composite gained 1.6%, with both indices hitting fresh intraday highs. The Russell 2000 also climbed 2.2% to a record level.

In a post on X, Iranian Foreign Minister Seyed Abbas Araghchi said, “In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran.”

Trump, in a separate post, said Iran had agreed to never close the waterway again, while emphasizing that a US naval blockade of Iranian ports would “REMAIN IN FULL FORCE” until a peace agreement is finalized.

Oil drops, cyclical stocks rebound

Oil prices fell sharply as fears of supply disruption eased. US West Texas Intermediate crude dropped 14%, trading just above $80 per barrel, while Brent crude declined 10% to above $89.

The decline in energy prices weighed on oil majors, with Exxon Mobil and Chevron falling 5.7% and 4.5%, respectively. The S&P 500 energy sector slid 4.8%.

At the same time, sectors sensitive to oil prices and geopolitical risk saw strong gains. Airline stocks surged, with American Airlines and United Airlines rising more than 7%. Cruise operators Carnival and Norwegian Cruise Line gained 8.7% and 7.5%, respectively.

Other consumer-facing companies, including Amazon and Airbnb, also moved higher. Meanwhile, the CBOE Volatility Index fell to a two-month low, reflecting improved investor sentiment.

With markets increasingly pricing in a potential end to the conflict, the reopening of the Strait of Hormuz—a vital artery for global oil flows—has eased inflation concerns and boosted risk appetite across asset classes.