NEW YORK — U.S. stock futures rose sharply Sunday evening after President Donald Trump announced that the United States and Iran had reached a deal to end their conflict and reopen the Strait of Hormuz.
Futures tied to the S&P 500, Dow Jones Industrial Average and Nasdaq climbed following the announcement, with some reports indicating gains of about 1% or more for major contracts. Oil futures fell on expectations of increased supply flows through the key waterway.
"The Deal with the Islamic Republic of Iran is now complete," Trump wrote on Truth Social. "I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!"
The agreement comes after months of hostilities that began earlier in 2026 and involved U.S. and Israeli actions against Iran. Details of the ceasefire framework, including timelines for implementation and any commitments on Iran's nuclear program, remain unclear. Pakistani mediators have played a central role in recent talks.
Market participants welcomed the news as a potential de-escalation that could ease disruptions to global energy supplies. The conflict had previously contributed to volatility in oil prices and broader financial markets.
Iranian officials have confirmed aspects of the agreement, though full terms were not immediately released. A formal signing is expected in the coming days, according to reports citing mediators.
U.S. officials have described the deal as a step toward ending the fighting, which included strikes and a naval blockade affecting shipping in the region. No immediate comment was available from Israeli officials on the announcement.
Trading in U.S. stock futures reflected investor relief, though analysts cautioned that the durability of the ceasefire would depend on implementation. As of late Sunday, specific percentage gains varied across reports, with Nasdaq futures showing relatively stronger moves.
The development marks a significant diplomatic development following earlier temporary ceasefires, including one in April. Further negotiations on longer-term issues are anticipated.
Markets are expected to open for a shortened trading week on Monday.
