US equity futures rose in the early morning of the Asian trading session on Monday, following an apparent pause in hostilities between the United States and Iran, while oil prices retreated.
Futures tracking the Dow Jones Industrial Average advanced by 257 points, or 0.49%, signaling a positive start for US equities. S&P 500 futures were 0.66% higher, while contracts on the Nasdaq 100 gained 1.08%.
On the commodities front, oil benchmarks saw their prices sink after Iran signaled a halt in its attacks, dependent on a reciprocal US pause. Brent crude futures shed over 5% to trade near $92 per barrel. US West Texas Intermediate futures registered a similar decline, falling 5% to approximately $85 per barrel.
According to reports citing a senior Iranian official, Iran will refrain from further military action as long as the United States does not resume strikes. This development followed a decision by Washington to pause its bombing operations after advisers to President Donald Trump warned about both a shortage of suitable targets and the need to conserve weapons inventories.
Addressing the developments on Sunday, U.S. Ambassador to the United Nations Mike Waltz told Fox News that President Donald Trump is allowing talks to proceed, signaling a tactical window for negotiations. While details remain sparse, senior U.S. officials emphasized that while military pressure can be reinstated, diplomatic engagement remains the preferred path if Iran engages in good faith. Still, he quoted Trump that the U.S. is locked and loaded if Iran continues its aggression.
In response, Iranian officials indicated a reciprocal stance. Al Arabiya reported via a senior Iranian official that Tehran will hold off on further military operations provided U.S. strikes remain suspended, though Iranian leadership cautioned that it remains watchful over Washington’s long-term motives.
The sudden de-escalation follows formal responses submitted by both nations to a joint mediation proposal led by Pakistan and Qatar. Sources familiar with the talks note that Tehran confirmed to Pakistani negotiators that it has not walked away from the draft memorandum of understanding, expressing readiness to resume multilateral discussions in Geneva, Doha, or Islamabad.
