US Stocks and Crypto Rally as Trump Delays Iran Strikes

TLDR

• US stock futures fell sharply Monday morning after Iran launched new attacks following Trump’s threats to strike Iranian energy infrastructure
• Trump then said he would postpone military strikes on Iran after “productive conversations” with Tehran
• Futures reversed course, with Dow, S&P 500, and Nasdaq futures all jumping over 2%
• Oil prices spiked above $100 a barrel before falling back after Trump’s announcement eased tensions
• The Russell 2000 small-cap index had confirmed correction territory, sitting more than 10% below its January record

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US stocks fell hard Monday morning before staging a sharp recovery after President Trump said he would hold off on military strikes against Iran following what he called “productive conversations” with Tehran.

Futures on the Dow Jones Industrial Average dropped roughly 0.8% early in the session. S&P 500 futures fell 0.7%, and Nasdaq 100 futures led the losses, falling around 1%.

E-Mini S&P 500 Jun 26 (ES=F)

Iran had launched fresh attacks earlier in the day. This came after Trump issued an ultimatum over the weekend, warning that he would order strikes on Iranian energy infrastructure if the Strait of Hormuz remained closed after 48 hours.

Iran’s Revolutionary Guards had threatened to attack Israel’s power plants and facilities supplying US bases in the Gulf if Trump followed through on his threat to “obliterate” Iran’s power network.

Markets were already on edge after four straight weeks of losses on Wall Street. The Nasdaq posted its biggest weekly drop since early February last week.

Oil Tops $100 Before Pulling Back

Oil prices surged as the conflict escalated. West Texas Intermediate crude futures jumped to tap $100 a barrel. Brent crude, the global benchmark, climbed above $113 a barrel.

Higher oil prices raise concerns about inflation and the Federal Reserve’s rate decisions. Gold futures, which had been up for the year, erased their 2026 gains on fears that the Fed could hold rates steady longer.

Stocks Stage Sharp Recovery

By mid-morning, Dow futures had surged over 1,100 points, up about 2.5%. S&P 500 futures rose more than 2.3%, and Nasdaq 100 futures climbed 2.4%.

Europe’s STOXX 600 index turned positive. Precious metals also gained ground. Oil prices fell sharply after the announcement.

The CBOE Volatility Index, known as Wall Street’s fear gauge, dropped after hitting its highest level in two weeks. It was last down around 4 points at 22.79.

Russell 2000 futures, which track small-cap stocks, jumped 4.7% after being down more than 1% earlier in the session. The small-cap index had ended Friday more than 10% below its January 22 record close, confirming it had entered correction territory.

The Russell 2000’s move into correction territory and the Nasdaq’s four-week losing streak were among the sharpest pressure points heading into the session.

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