US Stock Market Today: Wall Street Edges Higher, Oil Drops as Trump Delays Iran Strikes

Global markets rebounded on Monday after President Donald Trump said the United States would delay planned strikes on Iranian energy sites for five days while talks continued. Oil prices dropped sharply, while stocks in the US and Europe climbed after investors reacted to the possibility of a pause in the conflict.

The move followed a tense weekend in which Trump had warned Iran to reopen the Strait of Hormuz or face attacks on power plants. His latest remarks changed market direction within hours. On Monday, he said, “I just want to have as much oil in the system as possible,” adding that prices would “drop like a rock” if a deal was reached.

However, Iran’s foreign ministry denied that any talks had taken place, leaving traders to weigh both the chance of easing tensions and the risk of further disruption.

Stocks and Oil Swing After Trump’s Comments

US and European stock markets rose after Trump said both sides were keen to “make a deal” and that there were already “major points of agreement.” The S&P 500 gained 2% by 11 a.m. in New York, while the NASDAQ 100 rose 2.1% and the Dow Jones Industrial Average added 2.2%. In Europe, the Stoxx Europe 600 climbed 1.9%.

Oil moved in the opposite direction, with West Texas Intermediate crude falling 9% to $89.38 a barrel. Brent crude dropped as much as 14% to $96 before trimming losses and trading near $102 to $103 later in the session. Earlier in the day, Brent had surged to $113 a barrel as fears over the Strait of Hormuz pushed energy markets higher.

The reversal came after Trump said the US and Iran had held “VERY GOOD AND PRODUCTIVE” talks toward a “COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES.” However, Iranian state-affiliated media denied that any talks had taken place.

Middle East Tensions Keep Markets on Edge

Bond markets also responded to the change in tone. The yield on 10-year US Treasuries fell four basis points to 4.34%. Germany’s 10-year yield dropped seven basis points to 2.98%, while Britain’s 10-year yield declined 12 basis points to 4.87%. The move suggested investors were easing back from earlier inflation fears linked to energy prices.

Currency markets pointed in the same direction. The Bloomberg Dollar Spot Index fell 0.6%. The euro rose 0.4% to $1.1623, the British pound gained 0.8% to $1.3446, and the Japanese yen strengthened 0.5% to 158.47 per dollar. Bitcoin also rose 4.7% to $71,368.01, while Ether gained 5.8% to $2,178.61.

Furthermore, Spot gold slipped 0.4% to $4,476.02 an ounce. This decline showed reduced demand for traditional safe-haven assets during the session. 

The rebound in risk assets followed sharp concern earlier in the day. Before Trump’s new comments, investors focused on the threat of attacks on Iranian infrastructure and the continued closure of the Strait of Hormuz. The waterway carries about 20% of global oil and liquefied natural gas flows, which makes any disruption a major concern for energy buyers and shipping firms.

Central Banks and Governments Watch the Next Steps

The market reaction also fed into the debate over interest rates. Lower oil prices reduced some near-term pressure on inflation expectations, and traders pared back stronger bets on Federal Reserve tightening. Fed Governor Stephen Miran said the central bank should not base policy on short-term war-related developments. Chicago Fed President Austan Goolsbee also said the conflict could lead policymakers either toward rate increases or back toward cuts, depending on how events develop.

In the United Kingdom, officials prepared for another review of the energy and market situation. Prime Minister Keir Starmer was set to chair a Cobra meeting on Monday with Bank of England Governor Andrew Bailey. The agenda included energy security, supply chains, and pressure on household costs after a recent jump in oil and gas prices.

Corporate Updates:

• Pfizer said its experimental Lyme disease vaccine showed 73% effectiveness in a late-stage study.

• JPMorgan and other Wall Street banks began selling $8 billion in junk bonds tied to the leveraged buyout of Electronic Arts.

• Fannie Mae and Freddie Mac started placing large orders for mortgage-backed securities.

• DraftKings shares rose after a report said US senators planned bipartisan legislation on sports bets tied to prediction markets.

• Flutter Entertainment also gained from the same legislative report.

• Elliott Investment Management built a multibillion-dollar position in Synopsys.

• Elliott plans to push for changes at Synopsys, according to people familiar with the matter.

• Electronic Arts remained in focus as financing for its buyout moved into the debt market.

Monday's trading session showed how quickly prices can turn when traders respond to changes in war-related headlines. Stocks, bonds, oil, and currencies all moved sharply, while doubts remained over Trump’s account of talks and over how fast energy shipments through the Strait of Hormuz could recover.

Also Read: Stock Market Today: Sensex Crashes 1,742 Points, Nifty Drops to 22,551 as US-Iran War Enters Week Four