US-Iran Tensions Ease as Stocks Rise with Oil Prices in Freefall

Stocks on Wall Street have seen an uptick in trading on Monday, driven by a decrease in tensions between the US and Iran. This easing of hostilities has led to a significant drop in oil prices.

In premarket trading, energy-sensitive stocks such as United Airlines (UAL) and American Airlines (AAL) saw notable gains, increasing by 3.7% and 3.9%, respectively. Meanwhile, cruise operators Royal Caribbean (RCL) and Carnival (CVA) rose by 2% and 3.1%. However, the decline in Brent Crude prices to $88.30 a barrel weighed heavily on energy companies like Occidental Petroleum (OXY) and Exxon Mobil (XOM), whose shares fell by 3.6% and 3%, respectively.

Last week's market closed with heightened concerns about potential price pressures ahead of the Federal Reserve's monetary policy decision scheduled for Wednesday. Although a halt in attacks has been announced, shipping through the critical Strait of Hormuz remains limited, while assaults by Yemen's Iran-aligned Houthis on Saudi oil facilities continue to unsettle traders.