U.S. equity futures advanced early Monday after President Donald Trump revealed an agreement to end the conflict between the United States and Iran. The positive momentum launched a holiday-shortened trading week, with investors watching for broader market impacts from the development.
At 4:11 p.m. (Bangkok Time), futures tied to the Dow Jones Industrial Average increased 0.93%, while S&P 500 futures rose 1.28%. Nasdaq 100 futures outperformed, surging 2.15% following significant gains on Friday across major indices.
President Trump stated on social media late Sunday that negotiations with Iran had led to a finalized deal. Confirmation of an upcoming official signing ceremony came from Pakistan’s Prime Minister Shehbaz Sharif, who indicated it will take place on Friday in Switzerland.
Tehran indicated that within 60 days, discussions would begin toward a comprehensive peace agreement. The package under consideration may include measures such as reconstruction aid, access to frozen assets, and relief from oil-related sanctions, according to experts.
This announcement followed renewed hostilities between Israel and Hezbollah in Lebanon, which had cast doubt over the imminent resolution over the weekend.
Additionally, Trump noted that after the interim agreement is formally signed, the strategically important Strait of Hormuz would be reopened for mine-clearance operations, restoring a key shipping route for global energy markets. In response, oil prices fell sharply: Brent crude futures dropped 5.19% on Monday, falling to $82.80 per barrel, while West Texas Intermediate retreated 5.50% to $80.21 per barrel as supply concerns eased.
Friday completed a strong trading week for U.S. equities, including a surge following SpaceX’s record-setting IPO, which closed with a market capitalization above $2 trillion after climbing over 19%.
In the coming days, market participants will monitor major economic releases along with the Federal Reserve’s policy announcement. Data from CME FedWatch indicates that expectations overwhelmingly favor the Fed keeping interest rates steady.
