Trump's Iran U-Turn Sends Oil Prices Plummeting

Oil prices plummeted on Monday after US President Donald Trump said he would order forces to ease up on attacks in Iran. As a result, Wall Street indices rallied, with the S&P 500 rising 1.2% and the Dow Jones Industrial Average gaining 569 points, or 1.1%, by 11am Eastern time.

The drop in oil prices also eased worries about inflation, which had been driving up stock prices. Brent crude sank 4.9% to $83.59 per barrel, down from its recent highs between $72 and $102.

Companies with big fuel bills, such as airlines, benefited from the lower oil prices. United Airlines rose 6.7%, while American Airlines climbed 6.7%. Norwegian Cruise Line Holdings also increased by 3.1%.

The Treasury yield fell to 4.68% from 4.75% late Friday, and is still above its pre-war level of 3.97%. Higher yields can slow the economy by making borrowing more expensive for households and businesses.