The US stock market is likely to open with a sharp gap-up in Monday’s session, March 23, as futures of the three key indices — the Dow Jones Industrial Average, S&P 500, and Nasdaq—have surged 2.6%, 2.7%, and 2.5%, respectively, in pre-market trade after US President Donald Trump said the US and Iran had held productive talks over the last two days.
Trump also said he was halting any strikes on Iranian power plants and energy infrastructure for five days.
“I am pleased to report that the United States of America and the country of Iran have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” President Trump said in a social media post.
“Based on the tenor and tone of these in-depth, detailed, and constructive conversations, which will continue throughout the week, I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions,” Trump said.
Trump’s comments came as the Middle East conflict entered its fourth week, which had triggered massive selling across global markets, including the US stock market, although it held relatively better compared to the sharp declines seen in Asian markets.
Meanwhile, Trump had earlier set a deadline for Tehran to reopen the Strait of Hormuz or face potential strikes on its power infrastructure. Iran has warned it would retaliate by targeting energy and water assets across the Gulf.
Over the weekend, Iran reportedly launched missiles targeting Dimona in Israel, near a facility key to its long-suspected nuclear weapons programme. The Israeli facility was not damaged in the barrage.
Crude oil tumbles as easing tensions lift global risk sentiment
Following this, crude oil prices have plunged sharply, with Brent crude futures falling more than 14.3% to the day’s low of $96 per barrel as the announcement eased concerns over prolonged energy supply disruptions.
Meanwhile, precious metals, which touched their lowest levels of 2026 earlier in the day, have also erased most of their losses, with Comex gold rebounding $314 per troy ounce to trade at $4,406, while Comex silver recovered $7.10 per troy ounce to $68.30.
The US has been trying to reopen the Strait of Hormuz, the narrow mouth of the Persian Gulf, for energy shipments. Iran had shut the Strait — through which nearly a fifth of the world’s oil is shipped, along with other key commodities — in response to US and Israeli strikes.
Higher oil prices have already prompted several global central banks to revise their inflation forecasts upward and pause rate cuts, with the US Federal Reserve, Bank of Japan, and Bank of England signalling policy caution amid rising inflation risks.
Elevated crude prices have also led markets to scale back expectations of US Federal Reserve rate cuts in 2026 compared to earlier projections of up to three rate cuts at the start of the year.
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