Stocks jump, oil retreats after Trump pauses military action on Iran

US stock futures surged at March 23 opening bell after President Donald Trump announced he was postponing all military strikes on Iranian power plants for a five-day period.

The move came after Trump had previously threatened action if Iran did not restore unimpeded maritime traffic through the Strait of Hormuz within 48 hours, NBC News reports.

Iranian state media characterized the announcement as a “back down” by the US, while the semi-official Mehr news agency cited Tehran’s foreign ministry, noting that “there is no dialogue between Tehran and Washington.”

Following Trump’s post on social media, S&P 500 and Nasdaq futures initially jumped roughly 3% but later settled at gains of about 1.6% after Iran’s statements. Dow Jones Industrial Average futures rose as much as 1,300 points before retracting to around 500 points, while Russell 2000 futures gained 3%.

Oil prices, which had initially plunged about 10% on Trump’s announcement, fell around 5% by mid-morning, with US crude trading near $92 per barrel and international Brent crude at roughly $105 per barrel. Despite the temporary decline, crude remains nearly 40% higher since the February 28 outbreak of the conflict and up 60% since the start of the year.

US natural gas prices dropped 4%, European natural gas futures fell 9%, and heating oil prices declined 3%, with heating oil often serving as a proxy for jet fuel costs.

US Treasury bonds also initially rose, pushing yields lower after sharp increases on March 19-20 driven by inflation fears linked to soaring energy prices. Following the Iranian media response, yields remained largely unchanged.

By Vafa Guliyeva