New york: The New York Stock Exchange experienced an upward trend as optimism grew over a potential ceasefire in the Middle East. The Dow Jones Industrial Average rose by 0.66%, gaining 305.43 points to close at 46,429.49. Similarly, the Nasdaq composite increased by 0.77%, adding 167.93 points to reach 21,929.83, and the S and P 500 climbed 0.54%, up by 35.53 points, ending at 6,591.90. The Volatility Index (VIX), known as the market's 'fear index,' decreased by 6.01% to 25.33.

According to Anadolu Agency, the positive sentiment in the markets was influenced by declining oil prices, amid speculations of a ceasefire agreement between the US and Iran. US President Donald Trump announced that negotiations with Iran were underway, raising hopes that the ongoing conflict might be nearing resolution. However, Iran reacted to the proposed plan by setting five conditions, including control over the Strait of Hormuz, and rejected the US proposal.

White House Spokesperson Karoline Leavitt mentioned that negotiations continued, emphasizing that while the President preferred peace, stronger actions would be taken if Iran did not concede defeat. Concurrently, Brent crude oil prices dropped by 1.7% to $102.76 per barrel by 2000GMT.

The US current account deficit also saw a significant reduction, falling by 20.2% to $190.7 billion in the fourth quarter of 2025, marking its lowest level since the first quarter of 2021.

European stock markets mirrored the US trend, with the pan-European Stoxx Europe 600 index gaining 1.42% to close at 587.49 points. The UK's FTSE 100 increased by 1.42% to 10,106.84, Germany's DAX 40 rose by 1.41% to 22,957.08, and France's CAC 40 earned 1.33% to 7,846.55. Italy's FTSE MIB 30 saw a 1.48% rise, closing at 44,013.29, while Spain's IBEX 35 experienced a 1.54% increase, finishing at 17,169.90.