U.S. stock futures rose sharply Monday evening, reversing early losses after a Wall Street Journal report showed that President Donald Trump is considering ending the war in Iran without reopening the Strait of Hormuz.
Futures advanced after a mostly negative session on Wall Street, as Trump continued his threats against Iran regarding accepting a ceasefire and reopening Hormuz, while technology stocks continued their downward trend.
S&P 500 futures rose 0.9% to 6,446.75 points by 5:43 AM (Saudi Arabia time). Nasdaq 100 futures climbed 1% to 23,364.0 points, while Dow Jones futures also rose 1% to 45,902.0 points.
Trump considers ending the war with Iran without reopening the Strait of Hormuz - Wall Street Journal
Trump told his aides he was prepared to end the war in Iran even if the Strait of Hormuz remained closed, the Wall Street Journal reported Monday evening, citing comments from administration officials.
Trump and his aides assessed that reopening the Strait of Hormuz would likely extend his initial timeline for the conflict from four to six weeks. He decided the United States had to achieve its primary objectives of crippling the Iranian navy and missile stockpiles and ending the current hostilities, according to the Wall Street Journal report.
Washington will then put diplomatic pressure on Tehran to reopen the strait, and is also likely to press allies in Europe and the Gulf to take the lead in reopening the strait, the Wall Street Journal reported.
A U.S. halt to military action against Iran could help spur a broader de-escalation of the war, given that Tehran has repeatedly called for a cessation of hostilities before any direct negotiations.
The Strait of Hormuz is a key flashpoint in the conflict, as the waterway supplies approximately 20% of the world's oil. Global oil and gas prices have risen sharply over the past month as Iran has effectively closed the strait.
Wall Street falls as tensions over Iran persist and technology weakens
Wall Street indexes recorded a mostly weak session on Monday as markets remained nervous about Iran, especially after Trump issued further threats against Tehran.
Technology stocks also continued to weaken amid concerns about artificial intelligence and slower-than-expected demand for chips.
Hostilities in the Middle East showed little sign of abating, with Iran attacking targets in Israel and other Gulf states. The Houthis in Yemen also attacked Israel over the weekend, potentially opening a new front in the war.
Iran also largely rejected calls for a ceasefire, describing proposals from the United States as unrealistic.
Oil prices continued to rise on the prospect of continued tensions in the Middle East, although they pared some gains after the Wall Street Journal report.
The S&P 500 fell 0.4% to 6,343.72 on Monday. The NASDAQ Composite dropped 0.7% to 20,794.64, while the Dow Jones Industrial Average rose 0.1% to 45,216.14.
