US equity futures climbed to a one-month high on Wednesday after President Trump agreed to a ceasefire with Iran and backed away from earlier threats to launch large-scale strikes on Iranian infrastructure. Futures on the S&P 500 and Dow rose nearly 3%, while Nasdaq 100 contracts advanced more than 3.5%.
The ceasefire, set to last for the next two weeks, reportedly includes unrestricted tanker traffic through the Strait of Hormuz. At the same time, officials from Oman and other GCC countries voiced opposition to the toll system for the strategic waterway that had been promoted by Tehran.
These developments sent crude oil and refined product prices sharply lower, easing prior fears of energy-driven inflation and lending support to government bonds. The renewed risk appetite fueled a rally in speculative AI-related stocks, with Nvidia, Tesla, AMD, and Micron jumping between 4% and 10% in pre-market trading. Airlines also moved higher on expectations of improved jet fuel availability, and Delta shares surged 12% after the company reported earnings.
