Stock futures climbed while oil prices initially dropped after President Donald Trump announced early Monday that the United States and Iran had engaged in “productive” talks aimed at resolving ongoing tensions in the Middle East.
West Texas Intermediate crude fell below $90 per barrel from over $100 in morning trading, and Brent Crude dipped under $100. Meanwhile, Dow Jones Industrial Average futures rose roughly 2.6%.
Trump posted on Truth Social that the discussions with Iran were “productive” and focused on achieving a full resolution of hostilities. He also said he directed the Department of Defense to delay planned strikes on Iranian power and energy facilities for five days, contingent on the success of ongoing negotiations.
Oil prices later recovered, with Brent Crude climbing back to around $105 per barrel. Market analyst Chris Beauchamp of IG noted that the rebound reflected continued skepticism, given ongoing concerns about the Strait of Hormuz and potential further airstrikes.
The announcement follows Trump’s recent threat to target Iran’s power plants if the country did not reopen the strategic waterway within 48 hours. Iran responded on Sunday with threats to strike U.S. and Israeli infrastructure across the region, escalating tensions further.