Why Iran's Retaliation Led Oil Prices to Fall and the S&P 500 to Jump 1%

The stock market rallied and oil prices sank after Wall Street saw a chance for de-escalation in the Middle East after Iran’s retaliatory missile attack aimed at a U.S. military base in Qatar.

The Dow Jones Industrial Average rose 375 points, or 0.9%. The S&P 500 gained 1%. The Nasdaq Composite rallied 0.9%.

Brent crude oil futures, the international benchmark, fell 7.2% to $71.48 a barrel, its largest one-day drop since July 5, 2022, according to Dow Jones Market Data. WTI crude oil futures sank 7.2% to $68.51 a barrel, its lowest price since June 12.