US stock futures rose into Tuesday after President Trump reportedly told administration officials that he would be willing to end the war in Iran without a full reopening of the Strait of Hormuz.
Contracts linked to the S&P 500 (ES=F) rose 1% as Nasdaq 100 (NQ=F) futures climbed 0.95%. Dow Jones Industrial Average (YM=F) futures were up 1%.
Trump had repeatedly threatened to reopen the strait by force. On Tuesday morning, the US president posted on social media, seemingly preparing to wind down aggressive military action.
“Iran has been, essentially, decimated,” Trump posted on Truth Social, addressing other countries. “The hard part is done. Go get your own oil!”
Communication from Washington has been erratic: Comments from US officials have pointed to potential progress in diplomatic discussions, while Trump also claimed that the US may move to seize control of Iran’s oil.
Investor sentiment turned down on Monday amid geopolitical risks. The CBOE Volatility Index (^VIX) topped 30, a sign of high market anxiety, while oil prices continued to push higher. West Texas Intermediate (CL=F) crude, the US benchmark, closed above $100 for the first time since 2022 as the US-Israeli war against Iran entered its fifth week.
Looking ahead, investors are gearing up for fresh economic data on Tuesday, including the March consumer confidence reading and the February Job Openings and Labor Turnover Survey (JOLTS), both of which should provide insight into the health of the US economy.
