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Why markets are shrugging off the Iran war — and whether it can last

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26/05/2026

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Major U.S. stock indexes rose during the holiday-shortened week, with several benchmarks closing at record highs, as investor sentiment was supported by rising hopes for a U.S.-Iran peace agreement, falling oil prices, and continued momentum in artificial intelligence-linked stocks. The Nasdaq Composite led among the major benchmarks, buoyed in part by AI optimism, while the Russell 2000 and the S&P 500 Indexes also posted solid gains. The Dow Jones Industrial Average lagged but still rose 0.9%. Early reports that the U.S. and Iran were moving toward a 60-day ceasefire extension and a reopening of traffic through the Strait of Hormuz helped push oil prices lower and supported risk appetite through much of the week.

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