Global markets are swinging back as investors are reacting to the shifting developments in the U.S.-Iran conflict, with oil prices and sudden policy changes causing volatility on Wall Street.

Last week, markets took a major hit. The Dow dropped roughly 1% (over 400 points), the S&P 500 fell about 1.5%, and the Nasdaq slid 2%, marking the fourth consecutive week of losses as fears of a wider Middle East war intensified.

The selloff was fueled largely by surging oil prices, which spiked as high as $112 per barrel when there were concerns that the Strait of Hormuz could be disrupted, a move that would choke off a major portion of the world’s oil supply.

But today, in a huge reversal, markets are now rebounding.

Stock futures jumped sharply after President Trump signaled a temporary pause in planned strikes on Iranian energy infrastructure, easing fears of immediate escalation, which was coming up with Trump’s 48-hour deadline.
The Dow futures surged as much as 1000 points, with the S&P 500 and Nasdaq also rising as investor sentiment improved.

At the same time, oil prices, which had been one of the main drivers of market panic, fell sharply following the announcement, dropping below $90 per barrel after spiking last week.

Markets have been reacting almost instantly to headlines, with swings driven not just by actual developments but by statements, threats, and even social media posts. One moment of escalation can send stocks tumbling and oil soaring, while even a hint of diplomacy can trigger a rapid rally.