Trump Signals Progress in Iran Talks: 5 Beaten-Down ETFs to Rally

President Donald Trump indicated that Iran had offered a “present” as a gesture of goodwill amid ongoing negotiations to end the 25-day conflict that has rattled global markets, per Bloomberg, as quoted on Yahoo Finance.

While he declined to provide specifics, Trump described the offer as “worth a tremendous amount of money” and confirmed it was tied to energy flows through the Strait of Hormuz. Meanwhile, Iranian media reported that a Thai vessel successfully passed through the crucial route on March 24, 2026, the same Bloomberg article reported.

Oil markets reacted sharply to signs of possible de-escalation. Brent crude fell as much as 7% to around $97 per barrel while West Texas Intermediate dropped to near $87.

Nuclear Issue Remains Central

Trump reiterated that a key U.S. condition for any agreement is preventing Iran from acquiring nuclear weapons. Reports suggest the U.S. has proposed a 15-point plan aimed at ending the conflict, with Iran reportedly agreeing to some initial parameters.

Time to Buy These Beaten-Down ETFs?

Over the past one-month, global markets have remained topsy-turvy. Oil shocks and inflationary fears have massively upset global stock exchanges. Apart from oil and energy stocks, hardly any assets have been able to stay afloat. Against this backdrop, we highlight below a few beaten-down ETFs that can be tapped amid ceasefire talks (read: 4 Reasons to Stay Cautious and Play ETFs Strategically).

ETFs in Focus

State Street SPDR S&P 500 ETF Trust SPY – Down 5.8% past month (as of March 24, 2026)

The underlying S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups. Although JPMorgan strategists have lowered their year-end target for the S&P 500 Index, warning that geopolitical risks are limiting upside for equities, we believe that any resolution to the crisis may lead to a risk-on rally in the S&P 500.

A team led by Fabio Bassi reduced the forecast to 7,200 from 7,500, citing a potential oil supply shock linked to disruptions in the Strait of Hormuz, per Bloomberg, as quoted on Yahoo Finance. Despite the downgrade, JPMorgan’s revised target still suggests good upside from current levels by year-end.

Invesco QQQ Trust, Series 1 QQQ – Down 5.3% past month (as of march 24, 2026)

The underlying Nasdaq-100 Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.

Disruptive technologies—like Artificial intelligence (AI)—are likely to create entirely new markets, allowing early investors to capture outsized long-term returns. These technologies are still in an early stage, leaving immense value yet untapped.

WisdomTree Japan Hedged Equity Fund DXJ – Down 8.2% past month (as of march 24, 2026)

Japan’s headline inflation rate eased for the fourth successive month in February due to stabilizing food prices and falling energy costs ( thanks to government measures). The consumer price index fell to 1.3% last month. The CPI reading came in at the lowest since March 2022 and below the central bank’s 2% target, down from 1.5% in January, as quoted on CNBC.

The core inflation rate moderated to 1.6%. The Bank of Japan (BoJ) has pegged its forecast for core inflation for fiscal 2026, starting April 1, at 1.9%. Since inflation is under control, we can expect the BoJ to not hike rates in the near term, which should favor Japanese companies and stocks.

Agreed, the inflation print is pre-war, and the reading for March, which includes the phase of the Iran war, may see a solid shoot-up. But if the war eases soon, Japanese inflation may cool down fast as well.

Having said that we would like to note that Abhijit Surya of Capital Economics noted that price pressures in Japan are more deep-rooted than the headline data suggests and expects core inflation to remain above the central bank’s target for the foreseeable future, as quoted on the same CNBC source.

United States Copper Index Fund CPER – Down 9.3% past month

The ETF CPER is down 4.7% this year. Copper’s potential rally can be driven by long-term fundamentals. Growing demand for electrification — from AI data centers to renewable-energy infrastructure — is expected to outpace supply in the coming years.

Note that even amid the Iran crisis, copper’s decline was less pronounced than gold (down about 14% past month) and silver (down about 21% past month). This highlights the importance of holding copper now to bet big on the AI boom (read: Will 2026 Be a Year of Silver & Copper ETFs?).

iShares MSCI South Korea ETF EWY – Down 13.5% past month

South Korea ETFs have lately emerged as quiet beneficiaries of the global AI boom, driven by strong semiconductor demand and rising export momentum. Gains were supported by chip giants Samsung Electronics and SK Hynix. With sustained earnings growth, EWY should continue to reflect strong investor confidence in Korea’s AI-powered market outlook. All investors need is a pause in the Iran war to make the most of the South Korea ETF’s potential. The Iran war hit the fund hard as South Korea imports around 70% of its crude oil and 20% of its liquefied natural gas from the Middle East, as quoted on CNBC.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

Get it now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Invesco QQQ (QQQ): ETF Research Reports

State Street SPDR S&P 500 ETF Trust (SPY): ETF Research Reports

WisdomTree Japan Hedged Equity ETF (DXJ): ETF Research Reports

iShares MSCI South Korea ETF (EWY): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research