U.S. stock futures rebound as report signals potential shift in Iran strategy

Futures climb after Wall Street Journal report

By 21:43 ET (01:43 GMT), S&P 500 Futures were up 0.9% at 6,446.75 points. Nasdaq 100 Futures gained 1% to 23,364.0 points, while Dow Jones Futures also rose 1% to 45,902.0 points. The gains marked a reversal from earlier declines in futures trading.

The Wall Street Journal reported on Monday evening that President Trump had told aides he was willing to end the war in Iran even if the Strait of Hormuz remained closed, citing comments from administration officials. According to the report, Trump and his aides assessed that a mission to reopen the strait would likely extend his initial four-to-six week timeline for the conflict.

The administration’s stated objectives included crippling Iran’s navy and missile stocks and then winding down current hostilities. Following a cessation of U.S. military action, Washington would seek to pressure Tehran diplomatically to reopen the strait and would likely press European and Gulf allies to take the lead on that effort.

Market performance and role of the Strait of Hormuz

Earlier on Monday, major U.S. equity indexes delivered a mixed performance. The S&P 500 declined 0.4% to 6,343.72 points, and the NASDAQ Composite fell 0.7% to 20,794.64 points. The Dow Jones Industrial Average edged up 0.1% to 45,216.14 points. Sentiment remained fragile amid ongoing concerns about the conflict with Iran and further weakness in technology stocks, driven by worries over artificial intelligence and slower-than-expected chip demand.

The Strait of Hormuz remains a central issue in the conflict, as it supplies roughly 20% of the world’s oil consumption. Global oil and gas prices have risen sharply over the past month as Iran effectively blocked the passage. The prospect of the U.S. ceasing military action against Iran could support broader deescalation, as Tehran has repeatedly called for a cessation of hostilities before any direct negotiations.

FAQ

What triggered the rebound in U.S. stock index futures on Monday evening?
The rebound followed a Wall Street Journal report that President Donald Trump was considering ending the war in Iran without immediately reopening the Strait of Hormuz.

How did major U.S. equity indexes perform during Monday’s cash session?
The S&P 500 fell 0.4% to 6,343.72 points, the NASDAQ Composite declined 0.7% to 20,794.64 points, and the Dow Jones Industrial Average rose 0.1% to 45,216.14 points.

Why is the Strait of Hormuz significant to global markets?
The Strait of Hormuz is a key transit route that supplies roughly 20% of the world’s oil consumption, and its effective closure by Iran has contributed to sharp increases in global oil and gas prices over the past month.