U.S. futures posted strong gains as crude prices dropped sharply early Wednesday, after the United States and Iran agreed to a temporary ceasefire, easing concerns about shipping disruptions in the Strait of Hormuz. The pause in hostilities comes after high-level talks and the acceptance of a conditional peace offer, fueling optimism among investors.
At 4:05 p.m. (Bangkok Time), Dow Jones Industrial Average futures climbed by 1,097 points, or about 2.34%, with S&P 500 contracts up 2.58% and Nasdaq 100 futures advancing by 3.36%. This rally came as risk appetite returned after President Trump paused military action against Iran and indicated his willingness to review Iran’s proposed framework for de-escalation.
According to a statement from Iran’s Foreign Minister, Tehran’s Supreme National Security Council agreed to a two-week reopening of the Strait of Hormuz, contingent on a cessation of attacks and requiring coordination with Iranian armed forces for vessel transit. Media reports also cited Israel’s acceptance of the new truce.
The agreement sent oil prices sharply lower on relief that a major chokepoint for global energy shipments could resume operations. On Wednesday, Brent crude futures fell 13.60% to $94.41 per barrel, while West Texas Intermediate dropped by 15.67% to $95.25 per barrel.
Separately, market participants are awaiting the latest financial results from Delta Air Lines, which are due to be released before the market opens. The airline’s report is expected to provide further insight into the business impact following suspended flight operations and a spike in jet fuel costs linked to the recent conflict.
