Stock Market Climbs after Iran Ceasefire

Trump's efforts have resulted in a ceasefire between Israel and Iran, and the stock market has reacted positively.

Written by: Timothy St. John • Tuesday, June 24, 2025 • 2 min read

• Last updated: Tuesday, June 24, 2025

Stocks are up as Iran ceases hostilities with Israel.

Quick overview

The stock market surged following Iran's agreement to cease hostilities with Israel, with major indices showing significant gains.
President Trump's missile strikes on Iranian nuclear facilities drew global criticism, but the situation shifted quickly with Iran's agreement to stop attacks.
The ceasefire, imposed by the U.S., is uncertain and could lead to further conflict, particularly in Gaza, affecting market stability.
Investors are advised to remain cautious, as the volatile situation may lead to rapid market fluctuations similar to past tariff announcements.

On Tuesday, the stock market reacted to Iran’s agreement to stop hostilities immediately with Israel, with all three major indices climbing quickly.

A brokered deal with Iran and Israel results in higher stock prices.

U.S. President Donald Trump ordered three missile strikes on nuclear facilities in Iran this week, and global reaction was strong against the US involvement in the Middle East fighting between Israel and Iran. However, only hours later, Iran agreed to stop missile attacks on Israel. Now, the Israeli military says it can focus on bringing back hostages and dismantling the Hamas regime.

The Dow Jones climbed 1.22% on Tuesday at the news of the ceased hostilities. The S&P 500 added 1.18%, and the Nasdaq Composite gained 1.55%. Much of the stock market trended upward by Tuesday afternoon, marking clear relief for investors as they see that an effective ceasefire has been reached in a conflict that they worried might drag on for months.

What’s Next for the Market?

This ceasefire between the two countries is being imposed by the United States and is not the result of lengthy in-person negotiations, so no one knows if it will hold. Already since the agreement started, there have been further small attacks between the countries, with Trump intervening once more to blast them over social media.

An agreement is in place, but things could always change rapidly, as they tend to do in the Middle East. With Israel now focusing on Gaza, more fighting could break out in that area, but for now the stock market is in a bullish trend. We should see the markets tick upward throughout the rest of the day and then through Wednesday as well as investors digest the news of the ceasefire.

Investors should treat the news of the ceasefire similar to how they have treated Trump’s tariffs. There is a chance that the situation could change at any moment and new tariffs could be announced or one or more countries could break their tariff agreement. This creates an unstable environment for the stock market, but it also creates opportunities for incredible shifts up and down in the market.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.