Wall Street Loves the Iran Deal. Israel? Not So Much.

The stock market threw a celebration Monday morning as investors cheered reports that the United States and Iran have reached a framework agreement aimed at ending months of conflict in the Middle East. The optimism sent the Dow Jones Industrial Average soaring more than 600 points to fresh record highs while oil prices tumbled and risk assets surged across the board. Meanwhile, SpaceX continued its remarkable public market debut, rising again on its second day of trading as investors piled into one of the most anticipated IPOs in history.

For Wall Street, the message was simple: peace is profitable.

For Israeli Prime Minister Benjamin Netanyahu, however, the proposed agreement appears far more complicated.

What Is in the U.S.-Iran Deal?

According to reports from multiple international outlets, the framework agreement includes an end to active hostilities, the reopening of the Strait of Hormuz, and additional negotiations surrounding Iran’s nuclear program. The deal is expected to be formally signed later this week in Switzerland after what officials described as a preliminary digital agreement between both nations. The reopening of the Strait of Hormuz is particularly significant because nearly a fifth of the world’s oil supply passes through the critical shipping lane.

Markets immediately responded.

Oil prices dropped sharply as traders priced in the possibility that global energy supplies would stabilize. Investors also rushed into stocks, betting that reduced geopolitical uncertainty could help ease inflation pressures and support economic growth. European markets hit record highs while U.S. futures surged before the opening bell.

Netanyahu’s Concerns Continue to Grow

While the White House has promoted the agreement as a breakthrough, Israeli leadership has been noticeably less enthusiastic.

Reports indicate that Netanyahu was not directly involved in the negotiations and was reportedly caught off guard by how quickly discussions advanced. In recent days, tensions between Washington and Jerusalem have become increasingly public as President Trump pushed for diplomacy while urging Israel to avoid actions that could derail negotiations.

Israeli officials and security experts have expressed concerns that the agreement does not go far enough to address Iran’s missile programs, proxy networks, and long-term regional influence. Critics within Israel have labeled the proposal a “bad deal,” arguing that it focuses heavily on ending the current conflict while postponing tougher questions about Iran’s military capabilities.

Netanyahu has also reportedly rejected portions of the broader regional framework, particularly provisions involving Lebanon and Hezbollah-related security concerns.

The result is an unusual dynamic. Washington sees a pathway toward stability, while many in Israel fear the agreement may only delay future confrontations.

Why Investors Are Celebrating

Financial markets tend to hate uncertainty, and the Middle East conflict created plenty of it.

The war disrupted shipping routes, fueled fears of oil shortages, and raised concerns about broader regional escalation. Every missile launch or military strike carried the potential to shock energy markets and push inflation higher.

Now investors see a different scenario.

A functioning Strait of Hormuz could restore oil flows, lower transportation costs, and reduce pressure on global supply chains. Lower oil prices may also ease inflation concerns, giving central banks greater flexibility moving forward. That combination has become a powerful catalyst for stocks.

Banking stocks, travel companies, airlines, and technology firms were among the biggest winners as investors shifted away from defensive positions and back into growth-focused assets.

SpaceX Keeps Climbing

Adding to Wall Street’s excitement was another strong day for SpaceX shares.

The aerospace giant extended gains during its second trading session, further boosting a valuation that already places it among the most valuable companies on the planet. Investor enthusiasm remains fueled by SpaceX’s dominance in commercial launches, Starlink’s global expansion, defense contracts, and expectations surrounding future space-based communications and transportation businesses.

The timing could not be better.

As geopolitical tensions cool and investor confidence rises, capital is flowing aggressively into innovative growth companies. Few names capture that enthusiasm better than SpaceX.

The Bigger Picture

The market’s reaction reveals something important about today’s economy.

Investors are increasingly rewarding stability. Whether it is a ceasefire in the Middle East, lower oil prices, or reduced geopolitical risk, markets are signaling a preference for predictability over confrontation.

Yet significant questions remain.

The agreement is still a framework. Final signatures have not yet been completed, and several details surrounding enforcement, sanctions, nuclear oversight, and regional security remain unresolved. Even supporters acknowledge that the hardest negotiations may still lie ahead.

For now, Wall Street is celebrating.

The Dow is setting records. Oil is falling. SpaceX is soaring.

But whether this agreement becomes a lasting peace or simply a temporary pause may determine what happens next—not only for the Middle East, but for global markets as well.