Global markets found some relief on Monday after US President Donald Trump signalled a pause in military action against Iran. The move helped improve investor sentiment, pushing Wall Street higher while oil prices fell sharply.
US stock markets opened on a strong note, with investors stepping back into riskier assets. The Dow Jones Industrial Average jumped 630.35 points, or 1.38%, to 46,207.82.
The S&P 500 rose 87.73 points, or 1.35%, to 6,594.40, while the Nasdaq Composite gained 336.51 points, or 1.55%, to 21,984.12.
The rally reflected a shift in mood, as fears of an immediate escalation in the Middle East eased.
The positive sentiment followed Trump’s statement that the US would postpone planned strikes on Iranian power plants and energy infrastructure for five days.
He said the decision came after “productive” discussions with Iran, raising hopes of a diplomatic solution. The pause is temporary and depends on how talks progress during the week.
OIL PRICES TUMBLE ON EASING TENSIONS
Oil markets reacted quickly to the change in tone. Prices, which had earlier surged on fears of supply disruption, fell sharply once news of the delay came in.
The Strait of Hormuz, a key global oil route, remains at the centre of concerns. Any disruption there can impact global supply, which is why markets are highly sensitive to developments in the region.
The US dollar also saw volatility. It initially dropped after Trump’s announcement, falling about 0.7% against the euro and 0.6% against the yen.
However, it later recovered some ground, though it continued to trade lower on the day against both currencies.
Meanwhile, while Monday’s moves brought some relief, uncertainty is far from over. Investors are closely watching how the US-Iran talks unfold in the coming days.
