Dow Jones opened 700 points higher in Monday after global equity futures surged as US President Donald Trump indicated progress in talks with Iran and declared a temporary halt to planned strikes on Iranian energy infrastructure, raising hopes of a de-escalation in the Middle East conflict.
Before the opening bell ,futures linked to the Dow Jones Industrial Average jumped 950 points, or 2.1 per cent, while S&P 500 futures rose 1.9 per cent and Nasdaq-100 futures gained 2.1 per cent. The rebound followed a period of sharp losses driven by soaring oil prices and mounting concerns over a potential global recession.
Crude oil prices fell sharply after Trump’s remarks, with West Texas Intermediate dropping more than 9 per cent to around USD 89 per barrel, while Brent crude declined over 9 per cent to approximately USD 101 per barrel.
In a post on Truth Social, Trump said the United States and Iran had engaged in “productive conversations” over the past two days aimed at resolving hostilities. He added that he had instructed authorities to postpone any military strikes on Iranian power plants and energy infrastructure for five days, contingent on the progress of ongoing discussions.
However, gains pared slightly after Iranian state media denied that direct talks had taken place between the two countries, injecting some uncertainty into the outlook.
The development comes as the Iran conflict enters its fifth week, with tensions having escalated recently following Trump’s ultimatum to reopen the Strait of Hormuz, a critical global oil shipping route, within 48 hours or face military action. Iran had warned it would retaliate by targeting US-linked infrastructure across the region.
Prior to the rebound, US markets had been nearing correction territory, with the Dow and Nasdaq Composite down nearly 10 per cent from their record highs, while the S&P 500 had declined around 7 per cent.
The latest signals of potential de-escalation have offered relief to investors, easing fears over prolonged disruption to energy supplies and its impact on global growth.