US stock futures surged broadly on Monday after President Trump announced a ceasefire agreement between the United States and Iran late Sunday, a deal that includes the reopening of the Strait of Hormuz to commercial shipping traffic. The announcement triggered an immediate risk-on move across global asset classes, with technology-heavy Nasdaq 100 futures leading gains by climbing roughly 2.2%, while S&P 500 futures advanced about 1.3% and Dow futures rose around 1%.
The most pronounced reaction came in energy markets, where Brent crude fell sharply toward the $83 per barrel level, down from levels above $88 just days earlier, marking one of the steepest single-session declines in months. The reopening of the Strait of Hormuz removes a major supply-disruption risk that had been weighing on shipping lanes responsible for a significant share of the world's seaborne oil trade. Traders had been pricing in a geopolitical risk premium for weeks as tensions escalated, and the sudden de-escalation prompted a rapid unwinding of those positions.
Equity markets in Europe also responded positively, with major indexes climbing to fresh highs as the news rippled through trading desks overnight. Asian markets, including India's benchmark indexes, opened with a strong positive bias as well, citing the easing of geopolitical tensions alongside a recovery in currency markets that had been pressured by oil-driven inflation fears.
Beyond equities, both gold and Bitcoin posted notable gains, a move that some analysts attributed to continued demand for alternative stores of value even as traditional risk assets rallied, reflecting lingering uncertainty about how durable the ceasefire will prove. The US dollar lost ground against a basket of major currencies, consistent with reduced demand for safe-haven assets as the immediate threat of a wider regional conflict receded.
For investors, the rally presents a complex picture. Airlines, cruise lines, and other fuel-sensitive sectors are likely to be among the largest beneficiaries of falling oil prices, as lower fuel costs directly improve margins for these capital-intensive businesses. Conversely, energy producers and oilfield services companies may see near-term pressure on revenue expectations if crude prices stabilize at lower levels for an extended period.
Analysts cautioned that the durability of the rally will depend heavily on how the ceasefire holds in the coming days and weeks, with formal talks to finalize the broader peace agreement reportedly expected to begin within roughly 60 days. Any signs of the agreement faltering could quickly reverse Monday's gains, particularly in oil-sensitive sectors. The move also comes in a week packed with macroeconomic catalysts, including a Federal Reserve policy meeting later in the week, adding to the potential for volatility even as the initial reaction skews decisively positive.
Market strategists noted that the scale of Monday's pre-market move, particularly in the Nasdaq, reflects how heavily growth and technology stocks had been discounting geopolitical risk in recent sessions. With that risk apparently diminished, at least for now, capital appears to be rotating back toward higher-beta names that had lagged during the period of elevated tension.