Trump Eases Tensions with Iran, Markets React
US markets opened with gains and oil prices fell sharply on Monday after President Donald Trump announced that he would order US forces to refrain from attacking Iran. The President's statement came just a day after he expressed 'losing faith' in negotiations with Iran, warning of increased military action.
Futures for the S&P rose 0.6%, while Dow Jones Industrial Average futures climbed 1.1%. Nasdaq futures were up 0.3% before the opening bell on Monday.
The retreat in oil prices was not an isolated event, but rather part of a larger trend driven by rising and falling tensions between the US and Iran since late February. Brent crude fell $4.27, or 4.9%, to $83.66 per barrel, while U.S. benchmark crude lost $4.86, or 5.8%, to $79.81 per barrel.
The announcement also had an impact on currency markets, with the US dollar falling against the yen after the US and Japan confirmed that they had taken steps to prop up the value of the Japanese currency. The dollar fell from a recent high near 164 yen to 156.79 yen by late Monday.