US stocks on Thursday jumped for the second day in a row — even as oil prices climbed — following reports that Israel and Lebanon will pursue direct negotiations.
The Dow Jones Industrial Average jumped 276 points, or 0.6%, while the S&P 500 and Nasdaq gained 0.6% and 0.8%, respectively.
Brent crude oil prices rose 2% to $97 a barrel, while West Texas Intermediate crude went up nearly 4% to $98.
National average gasoline prices, which typically lag movement in oil benchmarks by a few weeks, continued to climb above $4 a gallon – hitting $4.17 on Thursday, according to AAA.
After President Trump announced a two-week ceasefire with Iran, the Dow on Wednesday clinched its biggest gain since April 2025 while oil prices slumped.
The commander-in-chief emphasized that the ceasefire was contingent on the reopening of the Strait of Hormuz, a vital maritime route for 20% of the world’s oil supply – but Iran is still reportedly blocking many ships from passing through the waterway, blaming it on a broken agreement.
Late Wednesday, Iran accused the US of breaking a joint ceasefire agreement as Israel launched a massive blitz on Tehran-backed Hezbollah in Lebanon, sending stocks nosediving.
Stock indexes reversed their declines and traded in the green after Israeli Prime Minister Benjamin Netanyahu announced Thursday that Israel has agreed to negotiations with Lebanon.
Meanwhile, Iran has reportedly been seeking tolls as high as $2 million per ship for safe passage through the strait, which could further complicate the free flow of crude through the Persian Gulf.
When asked about the idea on Wednesday, Trump told ABC News that he’s open to the concept as long as the US gets a cut of the action, calling it “a beautiful thing.”
Energy experts are warning that even if the strait is fully reopened, it could still take months for global supplies to normalize – and US gasoline prices will likely stay high through the summer.
Despite the temporary peace agreement, tensions remained high as Trump threatened to unleash a “bigger, and better, and stronger” military assault on Iran if it violates the deal.
In a Truth Social post late Wednesday, the president confirmed that US military forces will remain in the Middle East until Iran fully complies with a deal.
Vice President JD Vance is scheduled to lead a US delegation in talks with Iran on Saturday in Islamabad, alongside Pakistani mediators.
