Stock Market Jumps After Trump Postpones Iran Strikes, Signals 'Very Productive' Talks as Oil Tumbles

President Donald Trump said the United States and Iran have made meaningful progress toward easing tensions, announcing a temporary pause in planned military action that immediately lifted market sentiment.

In a post on Truth Social, Trump stated that the U.S. and Iran had engaged in "very good and productive conversations" over the past two days, aimed at achieving a "complete and total resolution" of hostilities in the Middle East. He added that the discussions were "in-depth, detailed, and constructive," and are expected to continue throughout the week.

In a phone interview with CNBC's Joe Kernen, Trump reinforced that message, saying the U.S. is "very intent on making a deal with Iran," and described the discussions as intense, with hopes that something substantive could emerge.

However, Iranian state media pushed back on Trump's claims, citing a senior security official who denied that any direct or indirect negotiations had taken place between Washington and Tehran. The official also warned that current tensions would continue to disrupt the Strait of Hormuz and broader energy markets, dismissing the notion of near-term stabilization.

The decision to delay strikes marks a notable shift from Trump's earlier hardline stance. Just days prior, he had issued a 48-hour ultimatum to Tehran, demanding the reopening of the Strait of Hormuz—a critical artery through which roughly 20% of global oil and gas flows—or face sweeping attacks on its energy infrastructure. That deadline had been set to expire Monday evening in Washington.

Despite conflicting narratives around diplomacy, Trump's move signals at least a tactical pause in escalation at a critical moment for global markets. The Strait of Hormuz remains a focal point for investors, given its central role in global energy supply chains.

Financial markets responded swiftly. Nasdaq 100 futures surged roughly 2% following the news, as investors priced in reduced geopolitical risk and a lower probability of near-term military escalation. The move reflects a broader relief rally in risk assets, particularly in technology stocks sensitive to macro uncertainty. Meanwhile, oil futures plunged more than 10%, as traders reacted to the reduced likelihood of immediate supply disruptions.

While uncertainty remains, Trump's latest signals suggest a possible diplomatic off-ramp from what had been a rapidly intensifying conflict, even as conflicting statements from Tehran cast doubt on the trajectory of negotiations. Markets will now closely watch whether these "productive" discussions translate into tangible de-escalation.d easing of tensions.