By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. June 20, 2025. Article no 1573.

The stock market today showed gains in the Dow Jones Industrial Average, which rose by about 0.3% to 0.4%, following President Donald Trump’s indication that he would give more time for negotiations with Iran before deciding on potential military action. In addition, European ministers are meeting with Iranian officials to push for de-escalation and a rollback of nuclear activities.

This diplomatic signal helped ease some geopolitical tensions, contributing to the Dow’s rise.

Oil prices dropped today as a result of Trump’s signal to allow time for diplomacy rather than immediate strikes on Iran, which reduced fears of a sharp escalation in the Middle East conflict that typically drives oil prices higher.

Yesterday, oil prices surged by approximately 11% amid escalating conflict between Iran and Israel, driven by fears of supply disruptions and broader geopolitical risks in the Middle East.

Meanwhile, the U.S. Federal Reserve’s outlook also influenced the market, with Fed Governor Christopher Waller suggesting the possibility of an interest rate cut in July due to mild inflation data, despite new tariffs. This dovish stance provided additional support to the stock market gains.

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On Tuesday, June 17, U.S. stock markets had slipped while oil prices were rising amid escalating tensions between Israel and Iran. The S&P 500 index fell about 0.8%, dropping approximately 50 points to 5982.73, reflecting investor caution as the conflict intensified. 

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© Copyright 2025 – Eurasia Business News. Article no. 1573.