Wall Street soars, oil plunges as China calls for comprehensive ceasefire in Iran-US war

1 hour ago 9

By YURI KAGEYAMA and MATT OTT

Associated Press

Published: May 5, 2026 astatine 11:31 PM

Updated: May 6, 2026 astatine 7:50 AM

Markets connected Wall Street soared overnight and U.S. crude prices plunged 13% aft China’s overseas curate connected Wednesday called for a broad ceasefire successful the Iran war, the latest spark of optimism that the two-month warfare could extremity soon.

Futures for the S&P 500 roseate 1% earlier the opening bell, portion futures for the Dow Jones Industrial Average climbed 1.2%. Nasdaq futures jumped 1.7%.

Wang Yi, speaking aft gathering with Iranian Foreign Minister Abbas Araghchi, said China was “deeply distressed” by the conflict. Araghchi was visiting Beijing for the archetypal clip since the warfare with the U.S. and Israel started Feb. 28.

China’s adjacent economical and governmental ties to Tehran springiness it a unsocial presumption of influence. The Trump medication is pressing China to usage that narration to impulse the Islamic Republic to unfastened the Strait of Hormuz.

News that Iranian officials were traveling to China up of a acme betwixt U.S. President Donald Trump and Chinese person Xi Jinping lifted marketplace sentiment.

Oil prices spiraled soon aft Wang's comments, with prices for a tube of U.S. crude falling much than $13 to $88,88 per barrel. Brent crude, the planetary standard, retreated $12.66 to $97.21 a barrel, extending declines that erased large jumps earlier successful the week. The prices inactive stay good supra their astir $70 terms earlier the warfare with Iran began.

Sinking lipid prices sent vigor giants shares sliding overnight, with Chevron, Exxon Mobil and ConocoPhillips each seeing losses of adjacent to 5%.

The imaginable of little pitchy substance prices pushed large U.S. airlines up, with Delta, United and American each gaining much than 6% successful premarket trading.

The Chinese minister’s comments followed an earlier connection by U.S. President Donald Trump that helium was pausing his short-lived U.S. effort to usher stranded commercialized vessels retired of the Strait of Hormuz successful hopes that a woody could beryllium finalized. A shaky ceasefire has been mostly holding, contempt exchanges of occurrence during the U.S. propulsion to reopen the strait connected Monday.

Also Tuesday night, Secretary of State Marco Rubio said the large U.S. subject cognition against Iran is implicit but stopped abbreviated of saying the struggle is implicit oregon cannot beryllium restarted.

“We’re not cheering for an further concern to occur,” helium said. “We would similar the way of peace.”

In bid for that to happen, Iran indispensable hold to Trump’s demands connected its atomic programme and reopen the Strait of Hormuz, Rubio said.

Iran’s effectual closure of the strait, a captious waterway done which large lipid and state supplies, fertilizer and different petroleum products passed earlier the war, has sent substance prices skyrocketing, rattled the planetary system and enactment tremendous economical unit connected countries, including large powers similar China.

Elsewhere, successful Europe astatine midday, France's CAC 40 added 1.6%, portion the Germany DAX roseate 1.5%. Britain's FTSE 100 surged 1.9%.

In Asian trading, South Korea’s Kospi gained 6.5% to 7,384.56, surpassing the 7,000 level for the archetypal time. Samsung Electronics' banal jumped 14% successful a rally driven by expectations of beardown maturation successful artificial intelligence.

Shares successful SK Hynix, different large Korean machine chipmaker, changeable up astir 11%. Both Samsung and SK Hynix are large manufacturers of the representation chips captious for AI applications.

Tokyo trading was closed for a holiday.

Australia’s S&P/ASX 200 gained 1.3% to 8,793.60. Hong Kong’s Hang Seng gained 1.2% to 26,213.78, portion the Shanghai Composite scale roseate 1.2% to 4,160.17.

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