President Trump agreed to suspend planned bombing of Iran, offering markets a reprieve from recent volatility. The decision came as a deadline for a Tuesday ultimatum approached, and negotiations advance toward a potential ceasefire.
Crude oil prices slumped following the announcement, while U.S. equity-index futures initially advanced and later settled to broadly flat levels. Asian stocks also saw a boost.
Investors are responding positively to hopes for an end to the six-week Middle East conflict and the possible resumption of oil and gas flows through the Strait of Hormuz. The suspension is set for two weeks.