President Donald Trump formally notified Congress on May 1, 2026, that U.S. military hostilities with Iran, which began on February 28, 2026, “have terminated.” The declaration, timed to the 60-day deadline under the War Powers Resolution of 1973, provided markets and investors with a clearer geopolitical signal ahead of May, triggering a broad risk-on rally across equities and cryptocurrencies.
War Powers Clock Reset: Trump Says Iran Hostilities Are Over
In a letter to House Speaker Mike Johnson and Senate President pro tempore Chuck Grassley, Trump stated that the hostilities “have terminated.” The White House argued that no new congressional authorization is required for the current U.S. military posture in the Middle East. The conflict, which some reports called “Operation Epic Fury,” involved U.S. and Israeli strikes targeting Iranian nuclear facilities, missile programs, military infrastructure, and leadership sites. Iran retaliated and briefly threatened the Strait of Hormuz. Trump formally notified Congress of the hostilities on March 2, 2026, starting the War Powers clock.
A ceasefire took effect on April 7, 2026, and has since been extended without any direct exchanges of fire between U.S. and Iranian forces. However, the U.S. has maintained a naval blockade to restrict Iranian oil exports, and negotiations for a permanent deal have continued through third-party mediators, including Pakistan. Trump told reporters this week that Iran had delivered a new proposal but said he was “not satisfied with it,” describing Iran’s leadership as “very disjointed” and “fractured.” He outlined two paths forward: a negotiated deal or military escalation, adding that he would “prefer not” the latter “on a human basis” but left the option open. Trump also called the War Powers Resolution “unconstitutional,” a position he has held previously.
Defense Secretary Pete Hegseth had previewed the legal interpretation in Senate testimony the day before, arguing the ceasefire effectively pauses the 60-day clock. A senior administration official said: “For [War Powers Resolution] purposes, the hostilities that began on Saturday, Feb. 28, have terminated.” Democrats pushed back. Sen. Tim Kaine argued the U.S. naval blockade constitutes ongoing hostilities and that the interpretation stretches the law. Senate Republicans blocked Democratic efforts to force a vote on authorization. Congress adjourned without acting.
Markets Soar: Nasdaq Record, Bitcoin Surge, Oil Pullback
Markets responded to the easing geopolitical signals and a strong earnings season. The Nasdaq Composite closed at 25,114, up 222 points and a record high. The S&P 500 gained 21 points to close at 7,230, while the Dow Jones Industrial Average slipped 153 points to 49,499. More than 80% of S&P 500 companies reporting this season beat earnings estimates. Oil prices pulled back, with Brent crude settling near $108 per barrel and WTI near $99.55, down roughly 2.6% on the day.
Gold held in the $4,580 to $4,636 per ounce range, reflecting persistent safe-haven demand tied to inflation concerns and ongoing Middle East uncertainty. Silver traded near $72 to $75 per ounce. Both metals remain at historically elevated levels. Bitcoin stood at around $78,311, up 2.52% on the day at Wall Street’s close, as broader risk-on sentiment lifted equities and crypto in tandem. Bitcoin’s market dominance held near 60%. Ethereum gained 1.88% to $2,303. Other top performers in the 24-hour window included hyperliquid (HYPE), up 4.04%, and dogecoin (DOGE), up 2.96%. Most of the top 20 crypto assets saw gains.
Bitcoin Nears $79K Resistance, Liquidating $120M in Bearish Bets
After a 13% gain in April, Bitcoin spiked over $2,000 on the first day of May to reach an intraday high near $79,000. Data from CoinGlass showed that approximately $120 million in short positions were liquidated over 24 hours, fueling the run-up. Traders are now watching the $79,000 level as a key resistance; a clean break could open the path to $80,000.
The U.S. economy grew at a 2.0% annualized rate in Q1 2026, rebounding from 0.5% growth in Q4 2025. Business investment, consumer spending, and artificial intelligence (AI)-related tailwinds supported the expansion. The Federal Reserve held its target rate steady at 3.50% to 3.75%, citing elevated uncertainty from Middle East developments and inflation running above the 2% target. Trump has tied the conflict’s full resolution to lower energy costs, telling reporters that oil and gas prices will “come tumbling down” once the war concludes.
The ceasefire remains intact but fragile. The U.S. naval blockade of Iranian oil exports continues, and Iran retains partial influence over the Strait of Hormuz. Negotiations are ongoing by phone. The move to declare hostilities terminated effectively resets the War Powers clock without ending the broader standoff, preserving flexibility for both renewed diplomacy and, if Trump chooses, future military action.