Stock market futures surged on Monday morning as U.S. and Iran paused their attacks over the weekend, easing concerns about Middle East escalation and sending oil prices sharply lower. Dow Jones Industrial Average futures rose 550 points, or 1.1%, while S&P 500 futures gained 1% and Nasdaq-100 futures advanced 1.7%, according to CNBC.
The pause in hostilities came after nearly two weeks of intense military exchanges between the two countries. Iran signaled it would halt attacks as long as the U.S. maintained its pause, according to Reuters reporting on Sunday, citing a senior Iranian official. The pause follows Washington’s decision to suspend its bombing campaign after President Donald Trump’s advisers warned that the military was running out of viable targets and raised concerns about depleting U.S. weapons stockpiles, CNBC reported.
Oil prices tumbled in response to the easing tensions. International benchmark Brent crude futures for September delivery fell 9.2% to around $87.89 a barrel, while U.S. West Texas Intermediate crude futures dropped over 7% to $82.46 a barrel, according to CNBC. The sharp decline in energy prices reversed weeks of volatility triggered by the Middle East conflict.
The recent escalation had threatened global energy supplies through the Strait of Hormuz, a critical shipping channel for oil. When President Trump declared the Iran ceasefire “over” on July 8, oil prices spiked to their highest levels in weeks and stocks dropped sharply. The U.S. and Iran had signed an initial deal in June 2026 to end months of conflict, reopen the Strait of Hormuz, and extend a ceasefire for 60 days of nuclear negotiations, according to AP News and Reuters.
Energy stocks led declines on Monday as falling oil prices weighed on the sector. Chevron, ExxonMobil, and ConocoPhillips were seen down 2.5%, 2.5%, and 3.2%, respectively, in premarket trading, CNBC reported. European energy giants TotalEnergies, BP, and Shell dropped 4.5%, 3.4%, and 1.5% in early trading as well.
The broader market rally reflected investor relief at the pause in fighting. Asia-Pacific markets closed in the green, with Japan’s Nikkei 225 adding 0.5% and Australia’s S&P/ASX 200 advancing 1.39%. European stocks also rallied, with Germany’s DAX adding 1.2% and France’s CAC 40 up 0.86% early Monday. The pause comes amid efforts to resume negotiations on an interim ceasefire deal, according to the Washington Post and other outlets.
The week ahead will bring significant tests for the market recovery. A succession of quarterly earnings reports from Amazon, Apple, Meta Platforms, and Microsoft will either ease investor concerns about artificial intelligence spending or add to them, CNBC noted. The Federal Reserve will also announce its latest interest rate decision on Wednesday, with markets pricing in the possibility of a rate hike as soon as this week, according to the CME FedWatch Tool.
Sources
- CNBC — stock futures gains, oil price declines, energy stock movements, Fed rate expectations
- Reuters — Iran halting attacks if U.S. maintains pause, June 2026 U.S.-Iran deal
- AP News — June 2026 U.S.-Iran deal to end war and reopen Strait of Hormuz
- Washington Post — U.S. and Iran pause attacks, negotiations on interim ceasefire
- Al Jazeera — Trump’s earlier declaration that ceasefire was “over” on July 10
