WASHINGTON — Stocks reached new records and oil prices dropped Wednesday after President Donald Trump’s announcement on curtailing the conflict with Iran.
The boost came after U.S. stocks closed in the red on Tuesday, expressing investors’ concerns about conflict in the Middle East and after Iran launched more than a dozen missile against two military bases in Iraq.
On Monday, Chevron Corporation CVX announced it was evacuating all of its American oil workers from Iraq as a “precautionary measure” “for the time being.”
Chevron and Exxon Mobil both reported losses on Tuesday, with Dow Jones shares declining 1.3 percent and 0.8 percent, respectively.
In response to Trump’s decision to issue sanctions, stocks rallied on Wednesday, breaking two records.
The S&P 500 reached another new intraday all-time high Wednesday by nearly one point, a seven-tenths percentage point increase, and the Nasdaq Composite reached an all-time high of 0.7 percent.
While the Dow Jones Industrial Average gained 0.8 percent, its increase didn’t match the all-time high record it set on Jan. 2.
Oil prices also dropped Wednesday by more than 4 percentage points after the president’s remarks, reassuring traders that tensions with Iran de-escalated.
The president announced sanctions on Iran, and said the door was open to negotiation, “toward making a deal with Iran that makes the world a safer and more peaceful place. We must also make a deal that allows Iran to thrive and prosper, and take advantage of its enormous untapped potential. Iran can be a great country.”
Trump urged U.S. allies, China, and Russia, to “work together to make a deal with Iran that makes the world a safer and more peaceful place.”
He concluded by saying, “to the people and leaders of Iran: We want you to have a future and a great future – one that you deserve, one of prosperity at home, and harmony with the nations of the world. The United States is ready to embrace peace with all who seek it.”
Bethany Blankley is contributor to The Center Square