US Market Open| Dow Jones rallies 700 pts after Trump pauses Iran action; Brent breaches $100/barrel

Markets caught a breather after US President Donald Trump dialled down immediate escalation with Iran, pushing crude lower and equities higher.

Oil prices slipped sharply after Trump said the US would postpone strikes on Iranian energy infrastructure by five days, citing “productive talks” aimed at a “complete and total resolution” of hostilities. However, Iran’s Foreign Ministry denied any such engagement, stating there has been “no dialogue” with the US.

The mixed signals were enough to ease near-term fears. All three major US indices opened higher, reversing early losses seen in futures trading on Monday.

The Dow Jones Industrial Average rose 1.6%, or over 700 points, off its intraday high of a 1,000-point gain, while the S&P 500 and Nasdaq Composite climbed about 1.3% and 1.4%, respectively.

Crude saw the sharpest reaction. At 19:30 IST, WTI crude at $88.78 (-9.62%), Brent crude at $100.5 (-10.38%), Murban crude at $137.9 (-5.79%) and natural gas at $2.935 (-5.17%)

The decline follows a volatile weekend, when Trump had warned of “obliterating” Iran’s power infrastructure if Tehran failed to reopen the Strait of Hormuz by Monday evening.

Safe-haven assets also reflected the shift in sentiment. Gold recovered slightly after the deadline extension but still traded nearly 3% lower, extending last week’s losses amid concerns that prolonged conflict could stoke inflation and keep interest rates elevated.

Meanwhile, the US 10-year Treasury yield, which had climbed above 4.4% earlier, retreated as easing tensions improved risk appetite.