Equities rally, dollar dips with oil as Trump cancels Iran attacks

NEW YORK/LONDON - MSCI's global equities index spiked higher on Thursday while the dollar went into reverse with oil futures on renewed hopes for peace in the Middle East after U.S. President Donald Trump said he has canceled planned strikes against Iran and that the U.S., Iran and other Middle Eastern countries had come to an agreement.

Hours after threatening more bombings and a desire to "take" oil export hub Kharg Island, Trump announced that talks "have been brought to the highest level of Iranian leadership and approved." He also wrote that "discussions and final points" have been approved by the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others in a post on Truth Social.

In energy markets, oil prices quickly turned lower after the announcement. U.S. crude fell 3% to $87.33 a barrel and Brent fell to $90.13 per barrel, down 3.19% on the day.

On Wall Street equities added to gains. At 01:59 p.m. ET (1759 GMT) the Dow Jones Industrial Average rose 803.60 points, or 1.61%, to 50,722.98, the S&P 500 rose 93.44 points, or 1.27%, to 7,360.43 and the Nasdaq Composite rose 423.00 points, or 1.66%, to 25,592.50.

MSCI's gauge of stocks across the globe rose 10.26 points, or 0.94%, to 1,097.24.

Earlier, the pan-European STOXX 600 index rose 0.54% after the European Central Bank delivered its first interest rate hike in nearly three years, as expected.

In currency markets, the safe-haven dollar lost ground on hopes for Middle East peace. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.14% to 99.91, with the euro up 0.14% at $1.1551.

Against the Japanese yen, the dollar weakened 0.25% to 160.11. In cryptocurrencies, bitcoin gained 2.80% to $63,480.09.

In fixed income markets, the yield on benchmark U.S. 10-year notes fell 6.3 basis points to 4.477%, from 4.54% late on Wednesday while the 30-year bond yield fell 6 basis points to 4.9655% from 5.025% late on Wednesday.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 5 basis points to 4.077%, from 4.127% late on Wednesday.

In precious metals, spot gold rose 1.97% to $4,153.54 an ounce and spot silver rose 3.47% to $65.90 an ounce.

Earlier, U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict drove up the cost of energy products. On the labor market side, the number of Americans filing claims for unemployment benefits increased marginally last week, pointing to continued labor market resilience in early June.

(Reporting by Sinéad Carew, Marc Jones; editing by Deepa Babington, Chris Reese and Nick Zieminski)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 11, 2026 at 11:30 AM.