Dow set to open higher after Trump calls off strikes on Iran, pending talks
By David Goldman, Chris Isidore, CNN
(CNN) — Stocks gained and oil prices fell after President Donald Trump on Monday said the United States would postpone further strikes on Iran’s energy infrastructure, pending the outcome of negotiations.
Dow futures were higher, set to rise more than 600 points, or 1.4%.
S&P 500 futures rose 1.5%, and Nasdaq futures gained 1.5%. The Nasdaq had closed on the verge of correction Friday – a decline of 10% from a recent peak.
Brent crude fell 6% to $105 a barrel. US crude fell 6% to $92 a barrel.
Trump, in a social media post, said the discussions would take place over the course of the week. But it’s unclear whether the Strait of Hormuz would be safe to transit. The crucial waterway carries 20% of the world’s oil supply.
Stock futures were significantly higher and oil was much lower immediately after Trump’s message about the military pause. But markets retreated from some of their initial enthusiasm after the Israel Defense Forces said it was continuing strikes on Tehran, and it became unclear whether Iran agreed with Trump’s version of events.
Gas prices surge
Global oil prices have soared since the start of the war in Iran due to the lack of oil tankers able to exit the strait. Trump had threatened to “obliterate” Iran’s power plants unless it stopped the attacks on shipping and allowed the strait to open by today.
Americans have paid the price for the fighting in the form of higher gas prices. US gas prices rose for the 23rd straight day Monday, reaching $3.96 in the latest reading from AAA, the highest price since August of 2022.
The average price is now up $1.02, or 34%, in the last month. That’s a bigger one-month gain than in the wake of Hurricane Katrina in 2005 and also the Russian invasion of Ukraine in 2022. The latter spike eventually took prices to a record $5.02 a gallon.
While America, the world’s largest oil producer, gets relatively little crude from the Middle East, prices are set in a global commodity market. US gas prices are directly affected since gasoline is derived from crude.
Even if the was is essentially over and oil prices do start to fall, it could take some time for pump prices to start to decline as previous increases work their way through the system.
This is a developing story and will be updated.
The-CNN-Wire
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