The stock market is rebounding in premarket trading on June 18, 2026, as investors celebrate President Donald Trump’s signing of a peace deal with Iran that promises to reopen the Strait of Hormuz and ease global energy tensions. The Dow, S&P 500, and Nasdaq futures are all rising as the agreement takes effect, according to Barron’s.
Oil prices have fallen sharply in response to the deal. Brent crude slid 2.3% to $77.71 a barrel, while WTI crude dropped 2.5% to $74.08 a barrel in early European trading, according to reporting from Dow Jones Newswires. Both benchmarks have fallen roughly 15% so far this week, reflecting the market’s relief at the prospect of normalizing energy supplies.
The closure of the Strait of Hormuz in early March 2026 had blocked a critical shipping channel through which approximately 20% of the world’s oil supply travels. The blockade forced crude prices to surge past $120 per barrel and created a major geopolitical risk premium that had weighed on stock markets. With the deal now allowing the waterway to reopen, traders are pricing out the war premium that had elevated energy costs across the global economy.
The immediate relief is already visible at the pump. Gasoline prices have fallen below $4 a gallon for the first time in months, according to Axios. Analysts at MUFG noted that while the industry remains cautious about the pace of normalization, some tankers have already resumed movements and exporters such as Iraq are preparing to increase shipments. Global inventories remain tight, particularly in the U.S., where crude stockpiles were down by 8.3 million barrels in the most recent week, but the prospect of additional Iranian supply entering the market has erased most of the geopolitical risk premium.
The stock market’s rebound reflects investor confidence that lower energy costs will ease inflation pressures and support corporate earnings. When similar tensions eased earlier in the year, markets rallied sharply—on June 15, the Nasdaq climbed 3% and the Dow marked a record-high close after the U.S. and Iran struck their preliminary agreement, demonstrating how sensitive equity investors are to developments that affect the cost of doing business globally.
Sources
- Barron’s — premarket trading gains and oil price declines on June 18, 2026
- Dow Jones Newswires — oil price movements and MUFG analyst commentary on Hormuz reopening
- Axios — gasoline prices falling below $4 a gallon
- Reuters — Nasdaq and Dow record performance on June 15 following deal announcement
- WWLP — Strait of Hormuz carrying 20% of world’s oil supply
