The Dow Jones Industrial Average soared nearly 900 points, while the S&P 500 and Nasdaq each climbed over one percent in a broad-based market rally. Smaller companies led the charge, with the Russell 2000 jumping close to three percent, lifting every major sector. Simultaneously, oil prices plunged more than 10 percent, with Brent crude falling below the critical $100 mark and West Texas Intermediate following closely behind. This dramatic reversal comes after weeks of concerns that rising energy costs could strain consumers and hinder economic growth.
'VERY GOOD AND PRODUCTIVE CONVERSATIONS': Trump on Iran Talks
President Trump announced that the United States has engaged in 'VERY GOOD AND PRODUCTIVE CONVERSATIONS' with Iran, signaling a potential thaw in one of the world’s most volatile relationships. Speaking to CNBC, Trump emphasized that the administration is 'very intent on making a deal with Iran.' He revealed that talks had already taken place Sunday evening between U.S. officials, including Jared Kushner and special envoy Steve Witkoff, and a top Iranian figure.
Iran is going to make a deal. The new leadership gave us a significant present that showed me that we’re dealing with the right people.
Trump hinted that more discussions could occur as soon as today, possibly by phone, with an in-person meeting expected in the near future. Markets reacted immediately to the possibility of reduced tensions in the Middle East, particularly in the Strait of Hormuz, a critical chokepoint for global oil shipments. Trump even floated the idea of joint U.S.-Iran control of the strategic waterway, a proposal that would have seemed unthinkable months ago.
Iran Denies Talks, Adds Uncertainty
Despite Trump’s optimism, Iranian state media pushed back, denying any talks had taken place and dismissing his claims as 'psychological warfare.' This conflicting narrative adds uncertainty to what markets are treating as a breakthrough moment. Meanwhile, investors continue to bet on reduced geopolitical risks, fueling the rally in equities and the plunge in oil prices.