Trump’s Iran deal is getting major blowback from everyone except the markets
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Trump’s Iran deal is getting major blowback from everyone except the markets
09 mins
President Trump is defending his controversial peace deal with Iran by pointing to the positive reaction from a stakeholder he often values most: the markets.
Trump reiterated the point on Truth Social as he flew home as part of his weeklong focus on markets, writing that “the Stock Market Just Hit A RECORD HIGH, and Oil prices are ‘tumbling’ down” as he touted the deal.
And the president does have evidence to back up his point, with crude oil prices now below $80 per barrel and average US gas prices below $4 per gallon after dropping over $0.50 in the past month.
The stock market has also responded positively, with the Nasdaq (^IXIC), the S&P 500 (^GSPC), and the Dow Jones Industrial Average (^DJI) all climbing on Thursday — although not quite at the record highs Trump often claims — as the reopening of the Strait of Hormuz to commercial traffic went into effect.
But Trump’s focus on the immediate economic lift and strength seen in energy, currency, and equity markets has done little to mollify critics — many from his own party — who say problems could be looming in as soon as 60 days and argue that the president has handed the theocratic regime in Iran a strategic victory.
Sen. Bill Cassidy, a Louisiana Republican, was just one of a chorus of critics awaiting the president back in Washington, recently calling the agreement “a lousy deal.”
President Trump at Chateau de Versailles, near Paris, ahead of a dinner on June 17, 2026. (Guillaume Baptiste/AFP via Getty Images) ·GUILLAUME BAPTISTE via Getty Images
White House plays up strength in energy, currency, and equity markets
At a briefing on Thursday at the White House, Vice President JD Vance likewise opened on immediate-term economic benefits.
“The president’s peace plan in Iran is already bearing real fruits,” he said, saying that 12.5 million barrels of oil went through the Strait of Hormuz overnight and describing the waterway as “where it was before the conflict.”
The deal indeed appears set to usher in a new status quo in the crucial waterway, where 20% of the world’s oil flowed before the war, a status traders may be banking on could last longer than 60 days.
In a note to clients, Signum Global Advisors predicted that more conflict between the US and Iran is likely, with Iran’s nuclear program unresolved, but “given how lengthy such negotiations typically are, it is extremely likely the initial 60-day nuclear negotiation period will be extended — thereby punting confrontation.”
In a press conference following the G7 summit in France, Trump repeatedly referenced markets, suggesting that financial factors influenced his decision to sign the deal.
“I didn’t want to ruin the world market, because there is so much money involved … it could have caused an international depression,” Trump said, defending a controversial provision allowing Iran to immediately profit from oil sales.
Critics have lambasted the provision as a giveaway that will give Iran access to billions of dollars in oil revenue to rebuild its military capabilities. That criticism got even louder after Punchbowl News reported that Trump’s State Department told Congress just this week that oil is the primary revenue source for Iran’s financing of terrorism.
President Trump speaks to reporters at a press conference during the G7 Leaders Summit on June 17, 2026, in Evian-les-Bains, France. (Anna Moneymaker/Getty Images) ·Anna Moneymaker via Getty Images
Again referencing markets, the president on Wednesday justified another controversial measure that could unfreeze billions in Iranian assets in the months ahead.
“At a certain point in time, I guess we’re going to have to give [frozen Iranian funds] back,” Trump said. “If we didn’t give it back, nobody would ever invest in the dollar again.”
Critics have likewise attacked these provisions. Sen. Ted Cruz of Texas recently worried that easing sanctions and providing Iran with “buckets of cash” could be akin to “giving away the victory.”
The president also made clear during the hourlong press conference on Wednesday that some stock market jitters had him worried.
“What I did not want to be was the late, great Herbert Hoover,” he said, one of multiple references to the Great Depression that followed the stock market crash of 1929.
A wave of critics
The positive market reaction to the deal this week comes despite withering criticism.
The Wall Street Journal editorial board called the deal “the surrender of the Strait to the dictates of Iranian foreign policy.” Israeli media has also been sharp, with the Times of Israel calling it “a catastrophic capitulation” and the Jerusalem Post calling it “a betrayal.”
Vice President JD Vance takes questions during a news conference at the White House on June 18. (Andrew Harnik/Getty Images) ·Andrew Harnik via Getty Images
Ignoring the attacks, Trump praised the markets for surging on good news from the Middle East — while ignoring bad headlines there.
“Every time we talked about the possibility of peace, the stock market shot up like a rocket ship,” Trump said on Wednesday, adding a false claim that “it never went down.”
“The stock market is more brilliant than anybody there is,” he said, “other than me, of course.”
This story has been updated.
Ben Werschkul is a Washington correspondent for Yahoo Finance.
