Oil plunges on report that U.S. and Iran near deal to end war as gas prices jump past $4.50

Iran warOil plunges, markets surge on report U.S. and Iran near deal to end war as gas prices jump past $4.50Stock futures surged, with the S&P 500 indicated to jump sharply at Wednesday's opening bell.Listen to this article with a free account00:0000:00 body:has(.jw-flag-floating) .article-hero__container, body:has(.jw-flag-floating) .article-hero__media-holder, body:has(.jw-flag-floating) #content { z-index: auto; } Add NBC News to GooglePresident Trump to pause 'Project Freedom' in Strait of Hormuz02:57Get more newsLiveonShareAdd NBC News to GoogleMay 6, 2026, 6:24 AM EDTBy Steve KopackThe price of oil plunged and markets surged early Wednesday after a new report that the U.S. believed it was nearing a deal to end the war with Iran and eventually reopen the Strait of Hormuz. Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.Officials in Washington and Tehran were working on "a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations," according to the report from Axios, which cited two U.S. officials and two additional sources.Markets immediately reacted to the report, sending the price of U.S. crude oil plunging by 9% to around $93 per barrel and international Brent crude oil down 8% to about $101 per barrel. Wholesale gas prices dropped 5% and heating oil, a proxy for jet fuel, fell 6.5%.Stock futures surged, indicating that major indexes will jump sharply when Wednesday's opening bell rings in New York. S&P 500 futures quickly rose more than 0.9%. Nasdaq 100 futures surged 1.5%, Russell 2000 futures rose 1.8% and Dow futures jumped more than 460 points. European markets also quickly jumped with the broad Stoxx 600 index soaring more than 2.2%. Bond yields also dropped sharply, with the 10-year and 30- year U.S. government bond yields dropping to their lowest levels in about a week.Falling bond yields can quickly translate into relief for c...