Late Tuesday, U.S. markets and global oil prices reacted swiftly after President Donald Trump announced a temporary pause in a military-backed operation designed to escort commercial ships through the Strait of Hormuz.
Dow Futures Rise As Oil Prices Retreat
Dow futures rose 104.00 points, or 0.21%, to 49,519.00, while S&P 500 futures gained 18.00 points, or 0.25%, to 7,305.25 and Nasdaq 100 futures advanced 144.25 points, or 0.51%, to 28,280.25 as of 8:27 p.m. EDT.
In commodities, WTI crude oil fell 1.23% to $101.01 per barrel. Brent crude declined 1.05% to $108.72 per barrel.
RBOB gasoline futures slipped 0.59% to $3.5992 per gallon, while natural gas futures dropped 0.57% to $2.772 per MMBtu.
ULSD heating oil edged higher 0.12% to $4.0352 per gallon.
Meanwhile, the U.S. dollar index stood at 98.274, down 0.22%.
Asian markets were mostly higher, with South Korea’s KOSPI surging 5.09% to 7,290.35, while Japan’s Nikkei 225 rose 0.38% to 59,513.12.
Trump Pauses ‘Project Freedom’ But Maintains Pressure
Trump said on Truth Social that while the U.S. operation known as “Project Freedom” would be paused temporarily to allow negotiations to continue, America’s blockade would remain firmly in place.
“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom … will be paused for a short period of time,” Trump wrote.
The operation had been launched on Sunday to secure commercial transit through the Strait of Hormuz after months of Iranian disruptions to Gulf shipping.
US-Iran Tensions Remain High
Earlier on Monday, U.S. Central Command said American naval forces destroyed six Iranian small boats and intercepted drones and missiles during recent clashes.
Adm. Brad Cooper said U.S. forces had cleared an “effective pathway” through Iranian mines for global shipping.
Iranian Foreign Minister Abbas Araghchi took to X and signaled cautious openness to diplomacy, saying recent events prove “there’s no military solution to a political crisis.”
“Project Freedom is Project Deadlock,” he added.
The Strait of Hormuz handles roughly a fifth of the world’s oil shipments, making any disruption a major driver of inflation, fuel costs and market volatility worldwide.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: miss.cabul on Shutterstock.com
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