Futures linked to the major U.S. indices inch higher, with markets assessing hopes for a potential ceasefire in the war in Iran against ongoing fighting and a fresh ultimatum from President Donald Trump. Oil and gold prices whipsaw after a report says Iran and the United States have received a framework to end hostilities and unblock the Strait of Hormuz.
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U.S. stock index futures pointed broadly higher on Monday, as investors gauged conflicting signals around the trajectory for the war in Iran.
By 04:09 ET (08:09 GMT), S&P 500 futures had gained 16 points, or 0.2%, Nasdaq 100 Futures had risen by 109 points, or 0.5%, and Dow Jones futures ticked up by 33 points, or 0.1%.
The moves followed a positive week on Wall Street. The blue-chip Dow Jones Industrial Average rose 3%, the benchmark S&P 500 gained 3.4%, and the tech-heavy Nasdaq Composite advanced 4.44%.
But markets remain largely on edge, with traders attempting to keep track of rapid developments out of the Middle East.
"[T]he Iran news flow and narrative seem to change by the hour, with dramatic developments on the ground, sharp swings in Trump’s rhetoric [...], and fresh deadlines [...]," analysts at Vital Knowledge said in a note to clients.
2. Iran, U.S. receive plan to end hostilities and reopen Strait of Hormuz - Reuters
Iran and the United States have received a framework to end hostilities and reopen the Strait of Hormuz, several media outlets reported, citing sources aware of the proposals. The plan could take effect as early as Monday.
According to the Associated Press, the plan has been put together by Pakistan, Egypt and Turkey and was exchanged with both sides overnight. It reportedly follows a two-stage approach: an immediate ceasefire followed by a broader comprehensive agreement.
"All elements need to be agreed today," the source told Reuters, adding that the initial understanding would be structured as a memorandum of understanding finalized electronically through Pakistan, which has served as the sole communication channel in the discussions.
Pakistan’s army chief, Field Marshal Asim Munir, has been in contact "all night long" with U.S. Vice President JD Vance, special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi, the report said.
Axios first reported Sunday that the U.S., Iran and regional mediators were discussing a potential 45-day ceasefire as part of a two-phase deal that could lead to a permanent end to the war, citing U.S., Israeli and regional sources.
In a social media post and media interviews over the weekend, President Trump issued a fresh warning that the U.S. would strike Iran’s power facilities if the Strait of Hormuz, a crucial waterway through which roughly a fifth of the world’s oil flows, is not unblocked by Tuesday evening. Iran has rejected the ultimatum.
