Markets Rise on Iran Deal Hopes Amid US Strikes

Stock futures in the United States climbed Tuesday as investors parsed mixed signals from the White House about negotiations to end the conflict with Iran. Dow Jones Industrial Average futures gained roughly 300 points in early trading, while the S&P 500 and Nasdaq-100 futures each advanced about 0.7 percent and 1 percent respectively. The moves came after President Trump described talks with Tehran as proceeding nicely, even as U.S. forces carried out what officials called defensive strikes on missile launch sites and boats in southern Iran.

The optimism reflected a broader bet that the two sides could reach a formal agreement within days that would ease disruptions to oil flows through the Strait of Hormuz. That waterway has been a focal point of the conflict since fighting escalated in late February, and traders have watched energy prices closely for signs that supply risks might recede. Brent crude traded near 98 dollars a barrel after earlier swings, while West Texas Intermediate futures fell more than 4 percent on the day.

Markets had already priced in some improvement last week. The S&P 500 posted its longest weekly winning streak since late 2023, and the Dow rose more than 2 percent. Those gains occurred against a backdrop of heavy uncertainty, with investors balancing hopes for de-escalation against the risk that talks could collapse and prompt a sharper military response. Trump has repeatedly signaled that Washington remains ready to shift to offensive operations if diplomacy fails, a stance that has kept traders attentive to every public statement.

Asian markets showed similar enthusiasm. South Korea's benchmark Kospi index closed above 8,000 for the first time, rising more than 2.5 percent as local investors welcomed the prospect of reduced energy volatility. The advance extended a three-day streak and came despite heavy foreign selling. European indexes were more muted, with the Stoxx 600 slipping 0.2 percent as some investors questioned whether recent strikes had complicated the path to an agreement. London's FTSE 100 managed a modest gain, but Germany's DAX declined.

Oil markets have been especially sensitive to the back-and-forth. Prices had already fallen sharply in the prior session on ceasefire hopes, only to rebound after confirmation of the latest U.S. actions. Analysts noted that Brent had traded below 100 dollars for more than a month before Monday, underscoring how quickly sentiment can shift when military and diplomatic developments arrive in quick succession. Silver prices, by contrast, held relatively steady, suggesting that some investors viewed the broader risk environment as less alarming than headline military moves might imply.

Secretary of State Marco Rubio indicated that finalizing any deal could still take several days, a timeline that leaves room for additional friction. The administration has also floated the idea of expanding the Abraham Accords to include more countries, a step that would tie any Iran agreement into a wider regional framework. Such linkage adds another layer of complexity, as it requires coordination among multiple governments whose interests do not always align neatly.

For now, futures pricing suggests that traders expect the diplomatic track to hold long enough to prevent an immediate return to full-scale escalation. Whether that expectation survives the next round of talks or the next reported strike remains the central question hanging over both energy markets and broader equities.