Key Takeaways:
- Trump declared U.S.-Iran hostilities “terminated” on May 1, bypassing the War Powers Resolution’s 60-day authorization deadline.
- Bitcoin climbed 2.52% near $79,000 earlier today, now at $78,311 per coin, as the Nasdaq hit a record above 25,000 on strong earnings and easing oil prices.
- Iran’s latest nuclear deal proposal, delivered via Pakistani mediators, was rejected by Trump, leaving negotiations unresolved.
War Powers Clock Reset: Trump Says U.S.-Iran Hostilities Are Over as Markets Rally
Trump sent a formal letter to House Speaker Mike Johnson and Senate President pro tempore Chuck Grassley on May 1, 2026, stating that the hostilities beginning on Feb. 28, 2026, “have terminated.” The White House used the declaration to argue that no new congressional authorization is required for the current U.S. military posture in the Middle East.
The conflict began when the United States, coordinating with Israeli strikes, launched military operations against Iran in what some reports called “Operation Epic Fury.” The strikes targeted 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. No direct exchanges of fire between U.S. and Iranian forces have occurred since. The U.S. has maintained a naval blockade to restrict Iranian oil exports, while 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 the day before in Senate testimony, 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 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.
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.
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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.