Trump Eases Iran Tensions, Stocks Rally, Oil Sinks

Brent crude fell 10.9% to settle at $99.94, and benchmark U.S. crude dropped 10.3% to $88.13, as reported by the Associated Press. The S&P 500 climbed 1.1% to 6,581.00, the Dow Jones Industrial Average rose 1.4% to 46,208.47, and the Nasdaq composite jumped 1.4% to 21,946.76.

European markets, including France's CAC 40 (up 0.8%) and Germany's DAX (up 1.2%), reversed earlier losses to post gains. Asian markets, which closed before Trump's announcement, experienced sharp declines, with South Korea’s Kospi falling 6.5%, Japan’s Nikkei 225 dropping 3.5%, and Hong Kong’s Hang Seng down 3.5%.

Treasury yields also eased, with the 10-year Treasury falling to 4.35% from 4.39% late Friday. The market's reaction was tentative due to Iran's denial of talks, with Iranian parliament speaker Mohammad Bagher Qalibaf stating "fakenews is used to manipulate the financial and oil markets" on X. Turkey and Egypt have reportedly engaged in coordinated mediation efforts.

Companies with high fuel bills, such as Norwegian Cruise Line Holdings (up 6.2%), United Airlines (up 4.5%), and American Airlines (up 3.6%), saw significant gains, and the Russell 2000 index of smaller stocks jumped 2.3%.