U.S. stock futures climbed Wednesday after a report that the U.S. and Iran were closing in on a deal to end their war, while oil prices fell on hopes the conflict could soon be resolved.
Futures pointed to strong gains after a report that the two countries were close to an agreement, though Trump later cast doubt on the outcome
Bloomberg / Getty Images
U.S. stock futures climbed Wednesday after a report that the U.S. and Iran were closing in on a deal to end their war, while oil prices fell on hopes the conflict could soon be resolved.
The Dow Jones Industrial Average futures were up roughly 505 points, a gain of about 1%, with S&P 500 futures adding 0.9% and Nasdaq $NDAQ 100 futures posting a 1.5% rise. By late morning, the major indexes were trading higher, with the Dow up about 0.73%, the S&P 500 up 0.81%, and the Nasdaq up 1.03%.
The optimism stemmed from a report by CNBC citing Axios that the two countries were approaching a deal that would include a moratorium on nuclear enrichment. Iran was weighing a U.S. proposal aimed at resolving the conflict, an Iranian foreign ministry spokesperson confirmed to CNBC.
Futures pulled back from their highs after President Donald Trump tempered expectations. Trump warned in a Truth Social post that failure to reach an agreement would trigger renewed strikes. "If they don't agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before," he wrote, while also characterizing Iran's acceptance of any deal as "perhaps, a big assumption."
Separately, the administration announced it had put "Project Freedom" — the initiative to escort vessels through the Strait of Hormuz — on hold, with Trump pointing to diplomatic headway with Iran as the reason.
Oil prices dropped on the de-escalation hopes. Trading above $91 a barrel, West Texas Intermediate futures were down around 10%, and Brent crude — the international benchmark — slid roughly 7% to hover near $102 a barrel. Motorists have yet to see any benefit from the easing in crude markets, with AAA data cited by The Wall Street Journal showing the nationwide average for a gallon of regular gasoline holding at $4.54 — well above the sub-$3 level that prevailed before the war.
Overseas markets joined in the advance, according to The Wall Street Journal, with bourses across Asia and Europe both closing higher.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.