Wall Street ends higher as hopes of Iran war resolution offset inflation fears

Wall Street stocks clawed their way back from a steep selloff to close higher, notching a final-hour rebound after US President Donald Trump suggested that the US-Israeli war on Iran could be close to ending.

All three indexes staged a late comeback after Trump said the war was “very far ahead” of his initial four-to-five-week estimated time frame.

Early in the session, oil prices reached their highest levels since mid-2022 due to constricted supply arising from shipping disruptions as the war on Iran entered its 10th day. Ballooning energy prices could metastasize into a broader inflation spike at a time when many US consumers are struggling with affordability.

Crude prices fell, however, after sources said the Trump administration is considering easing oil sanctions against Russia.

The stock market’s intraday swings as investors digest headlines have added volatility to the trading day in recent weeks.

“There is still an awful lot of uncertainty out there regarding the duration of the conflict, as well as the duration of the closure of the Strait of Hormuz,” says Sam Stovall, chief investment strategist of CFRA Research in New York. “Again today, seeing such a relative reversal in price movements indicates that investors are looking for any opportunity to jump back into the equity markets.”