Investors expressed optimism Sunday evening as the U.S. and Iran continued to halt attacks on each other, creating room for negotiations that could reopen the Strait of Hormuz.
Meanwhile, Wall Street is also expecting a busy week with gains in technology and the Federal Reserve’s policy meeting.
Futures tied to the Dow Jones industrial average rose 337 points, or 0.65%. S&P 500 futures rose 0.80%, but Nasdaq futures jumped 1.28%.
South Korea’s Kospi index, which has been a bellwether of global stocks of late, climbed 74 points, or 1.1%, as a chip heavyweight SK Hynix And Samsung new deals achieved.
U.S. oil prices fell 5.44% to $84.45 a barrel and Brent crude fell 5.25% to $91.70. Gold rose 1.15% to $4,118 an ounce.
President Donald Trump and Iranian officials said both sides were actively engaged in diplomacy after nearly two weeks of daily bombing.
Separately, Iran and Oman are also in talks to finalize a potential deal Iran operates ship transit through the Strait of Hormuz with fewer restrictions on ships.
The United States and Iran’s neighbors are unlikely to accept an agreement that recognizes Tehran’s control over the narrow waterway. But so is Trump No more options to ease tensions in the oil market headed for a crisis as inventories reached critical lows.
Meanwhile, the US has deployed more troops and aircraft to the Middle East in case Trump wants to resume major combat missions. But 40 days of all-out war and 13 days of limited attacks failed to reopen the Strait of Hormuz.
Sources Axios said that the head of US Central Command, Admiral Brad Cooper, recommended stopping the recent bombing campaign because it has reached the limit of its effectiveness.
The New York Times also reported that Gen. Dan Caine, chairman of the Joint Chiefs of Staff, privately warned that resuming major combat operations was feasible but that Iran’s retaliation would force Central Command to reduce its stockpile of interceptors to dangerous lows.
It is a stark turnaround from a week agoas Iranian attacks killed U.S. troops in Jordan, crossing Trump’s red line for resuming all-out war. Last week, reports said he had lost patience with the Islamic Republic and was in “Revenge mode.” Then he ordered the break on Friday.
While the US now appears to be more cautious, Ukraine’s attack on a Iranian supply ship in the Caspian Sea has suddenly expanded the map, leading to speculation that it could be used as leverage in US-Iran talks.
Any progress in reopening the Strait of Hormuz is likely to further lower oil prices as the Federal Reserve has become more hawkish on inflation control.
The central bankers are meeting next week, and Wall Street expects another “family feud” as policymakers debate whether to raise interest rates or keep them stable.
The tariff decision will also impact AI trading, which has slumped recently Investors are rebelling against massive investments.
Further updates on this front are expected when Microsoft And Meta Earnings report on Wednesday, followed by Apple And Amazon on Thursday.
Google parent alphabet beat earnings estimates last week but showed negative cash flow due to high expenses.
Nevertheless, demand for AI capacity remains robust. AI developer Anthropic has asked memory chip giant SK Hynix for supplies It is said that they produce their own semiconductors SK Group leader Chey Tae Won.
rival Samsung Electronics also received an order It’s worth more than $200 billion to make chips Broadcom as companies look to expand in the AI infrastructure market.