Trump Peace Talk Hints Boost Stocks, Sink Oil

This market reaction occurred despite Iran denying such talks took place, with Iranian parliament speaker Mohammad Bagher Qalibaf stating "fakenews is used to manipulate the financial and oil markets." Earlier, Trump had threatened to "obliterate" Iran's power plants if the Strait of Hormuz was not opened within 48 hours, but he subsequently postponed attacks for five days to allow talks to continue. Turkey and Egypt have initiated coordinated mediation efforts.

Brent crude initially dropped to $96 before recovering, settling at $99.94, while benchmark U.S. crude settled at $88.13, down 10.3% from Friday. The S&P 500 rose 74.52 points to 6,581.00, the Dow climbed 631.00 points (1.4%) to 46,208.47, and the Nasdaq composite jumped 299.15 points (1.4%) to 21,946.76.

European markets also saw gains, while Asian markets, which closed before Trump's announcement, experienced sharp drops, including South Korea’s Kospi falling 6.5%. Treasury yields eased, with the 10-year Treasury falling to 4.35% from 4.39% late Friday, though still above its 3.97% pre-war level.

Companies with high fuel bills, such as Norwegian Cruise Line Holdings (+6.2%), United Airlines (+4.5%), and American Airlines (+3.6%), led market gains.