NEW YORK, United States — U.S. stock markets demonstrated resilience on Wednesday, advancing despite ongoing uncertainty over a ceasefire extension in the Middle East, while oil prices surged sharply as tensions persisted around a critical global shipping route.
President Donald Trump's announcement to extend a ceasefire with Iran failed to prompt Tehran to reopen the Strait of Hormuz, a vital waterway for global oil and gas exports. This de facto closure, however, did little to dampen investor sentiment on Wall Street, with major indices climbing throughout the trading session.
"Most likely a deal is going to get done, it's a matter of when, not if," said Adam Sarhan of 50 Park Investments. "And that's why the market is up so much."
In contrast, crude markets reacted nervously. International benchmark Brent futures jumped 3.5 percent, closing back above $100 a barrel, after Iran sharply criticized the U.S. decision to maintain a blockade on its ports. The Strait of Hormuz typically handles about one-fifth of the world's oil and gas shipments, along with other essential commodities.
Iranian forces escalated tensions by targeting three container ships in the strait, seizing two and firing on a third, according to global security monitors and the country's Revolutionary Guards. The White House, however, stated that these actions did not constitute a ceasefire violation, as the vessels were not American or Israeli.
"No, because these were not US ships, these were not Israeli ships. These were two international vessels," Press Secretary Karoline Leavitt told Fox News.
Market analysts noted that while the ceasefire extension provides more time for negotiations, it also raises concerns about a prolonged conflict. "It could indicate the [Iranian] regime's hardened intent to carry on the war," said Trade Nation's David Morrison.
Wall Street's gains were bolstered by solid corporate earnings and ongoing enthusiasm for artificial intelligence, with leading firms surpassing forecasts and major tech deals fueling optimism. The broad-based S&P 500 rose 1.1 percent, reflecting confidence that the U.S.-Iran conflict would soon conclude.
European and Asian markets presented a mixed picture, with some indices dipping as countries reliant on Middle East energy supplies grappled with soaring inflation that threatens economic growth.