ISTANBUL

The New York Stock Exchange closed higher on optimism that a ceasefire might be reached in the Middle East.

The Dow earned 0.66%, or 305.43 points, to close at 46,429.49.

The Nasdaq composite rose 0.77%, or 167.93 points, to 21,929.83, while the S&P 500 increased 0.54%, or 35.53 points, to 6,591.90.

The Volatility Index (VIX), often referred to as the market’s “fear index,” fell by 6.01% to 25.33.

As oil prices fell amid expectations that the US and Iran might reach a ceasefire agreement, stock markets saw a positive trend.

US President Donald Trump’s claim that the US is “in negotiations” with Iran had raised investors’ hopes that the conflict might be entering its final phase.

While Iran reacted to the plan, it was reported that Iran had put forward five conditions—including the granting of control over the Strait of Hormuz—to end the war sparked by US and Israeli attacks, and had rejected the US proposal.

White House Spokesperson Karoline Leavitt also stated that negotiations between the US and Iran were ongoing, saying that the President’s preference has always been peace but if Iran does not accept the militarily defeat, President Trump will hit Iran harder than ever before.

Amid these developments, the price of Brent crude oil fell by 1.7% to $102.76 per barrel as of 2000GMT.

The US current account deficit, meanwhile, fell by 20.2% to $190.7 billion in the fourth quarter of 2025, marking its lowest level since the first quarter of 2021.

- European stocks

The stock markets in Europe also saw increases on Wednesday, with the pan-European Stoxx Europe 600 index gained 1.42% to close at 587.49 points.

The UK’s FTSE 100 increased 1.42% to 10,106.84, Germany’s DAX 40 went up by 1.41% to 22,957.08, and France’s CAC 40 earned 1.33% to 7,846.55.

Italy’s FTSE MIB 30 was up 1.48% to finish at 44,013.29, while Spain’s IBEX 35 posted an increase of 1.54% to 17,169.90.