U.S. stock futures moved higher on Tuesday while oil prices declined after U.S. President Donald Trump said the ongoing conflict involving Iran could end “very soon.” The comments helped calm investor concerns, although uncertainty remains as Iran has indicated it is willing to continue fighting and could potentially disrupt oil shipments through the crucial Strait of Hormuz.
Meanwhile, technology giant Oracle is expected to report its latest quarterly earnings after the close of U.S. markets.
U.S. Stock Futures Move Higher
Futures linked to major U.S. equity indices advanced in early trading as investors reacted to the possibility of a de-escalation in the Iran conflict.
By 04:11 ET (08:11 GMT), Dow Jones futures were up about 140 points, or 0.3%. S&P 500 futures gained roughly 25 points, or 0.4%, while Nasdaq 100 futures climbed 127 points, or 0.5%.
Wall Street experienced significant volatility during Monday’s session as markets reacted to developments in the ongoing U.S.-Israeli military campaign involving Iran.
Stocks initially declined, oil prices surged, and bond yields rose after reports that Mojtaba Khamenei—son of former Iranian leader Ayatollah Ali Khamenei—had been named the next supreme leader. President Donald Trump criticized the move, saying it suggested Iran’s leadership would maintain its hardline stance despite military pressure from the United States and Israel.
Concerns about a prolonged conflict in the Middle East raised fears of disruptions to global oil supplies. Investors also worried that higher energy prices could fuel inflation, potentially delaying interest rate cuts by central banks and slowing economic growth.
However, markets later stabilized after Trump said in an interview that the U.S. campaign against Iran was “very complete.” By the end of the session, all three major U.S. stock indices finished higher.
Analysts at Vital Knowledge noted that investors appear more concerned about missing a potential market rally if tensions ease than about holding risk assets during further escalation.
Trump Signals Iran War May End Soon
President Donald Trump later said the conflict involving Iran could end “very soon.” During a press conference, he stated that significant progress had been made toward achieving U.S. military objectives.
Trump described the joint U.S.-Israeli strikes on Iran as a major success. However, he also warned that Washington could escalate military operations if necessary.
He specifically cautioned that Iran could face severe consequences if it attempted to block oil shipments through the Strait of Hormuz, a key maritime route through which roughly one-fifth of the world’s oil supply passes.
Iranian officials reportedly responded by saying that no oil shipments would pass through the strait if attacks by the United States and Israel continued.
Oil Prices Decline After Recent Surge
Oil prices fell on Tuesday following Monday’s highly volatile session. The decline came after Trump suggested possible measures to ease supply disruptions.
By 04:39 ET, Brent crude futures had dropped about 7.3% to $91.77 per barrel. U.S. West Texas Intermediate (WTI) crude fell roughly 6.1% to $85.93 per barrel.
Oil had surged to around $120 per barrel on Monday after U.S. and Israeli strikes targeted several Iranian energy facilities, raising fears of significant supply disruptions.
Trump also mentioned the possibility of easing sanctions on certain oil producers, particularly Russia, to help offset supply shortages. At the same time, reports indicated that G7 countries are considering releasing emergency oil reserves to stabilize global energy markets.
Gold Prices Edge Higher
Gold prices moved slightly higher but remained within a tight trading range as investors monitored geopolitical developments.
The precious metal benefited from improved market sentiment after Trump suggested the conflict could end soon and proposed measures to control rising oil prices.
Despite the gains, gold has largely remained within a $5,000 to $5,200 per ounce range over the past week.
Concerns that higher energy prices could push inflation higher have limited gold’s upside. Persistent inflation could force central banks to maintain tighter monetary policies, strengthening the U.S. dollar and making gold more expensive for international buyers.
However, the U.S. dollar weakened slightly on Tuesday, suggesting that inflation concerns may be easing for now.
Oracle Earnings in Focus
Investors are also awaiting the latest earnings report from Oracle, which will be released after the closing bell on Wall Street.
The company has recently strengthened its position in the cloud computing sector through a partnership with OpenAI. This collaboration has boosted demand for Oracle’s data center capacity used to power artificial intelligence models.
However, some investors remain cautious about how Oracle plans to finance its large expansion in AI infrastructure. The company previously said it expects capital expenditures to reach around $50 billion this fiscal year, up from an earlier estimate of $35 billion.
Reports suggest Oracle may cut thousands of jobs as part of cost-control efforts. Additionally, Oracle and OpenAI have reportedly paused plans to expand a major AI data center in Texas due to ongoing financing negotiations.
Oracle shares, which reached around $328 last September, were trading near $151.56 ahead of Monday’s U.S. market open. The stock has declined more than 22% so far this year, reflecting investor concerns about the company’s spending plans.
