Catenaa, Monday, March 23, 2026- The Dow Jones Industrial Average surged almost 1,100 points on Monday after President Trump said that the US is engaged in “good and productive” negotiations with Tehran.
The blue-chip index jumped 1,092 points, or 2.4%, to 46,670 by 10.30 am. Other indices also climbed, with the S&P 500 adding 118 points, or 1.74%, and the tech-heavy Nasdaq Composite index gaining 1.9%.
Oil prices also immediately retreated, with Brent crude, the international benchmark, tumbling almost 10% and West Texas Intermediate, the US benchmark, falling 9%.
Trump had earlier set a deadline of Monday night for Iran to reopen ship traffic in the Strait of Hormuz, which carries about 20% of the world’s oil supply, threatening to “obliterate” Iran’s power plants if it didn’t concede.
Iran responded by threatening to attack US and Israeli energy and infrastructure assets in the region.
On Monday morning, Trump said the US would hold off on strikes against Iranian power plants and other energy infrastructure for five days. That is easing investor concerns that the Iran war could escalate, worsening the growing oil crisis.
“I AM PLEASED TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST,” Trump wrote in his post in Truth Social.
Market analysts said that Trump had to go for self-preservation rather than drive off the cliff deliberately, as the global economy was teetering on the edge of a precipice the likes of which Trump had never encountered during either of his two terms.
However, the Iranian Foreign Ministry issued a statement that contradicted Trump’s post.
“We deny what US President Donald Trump said regarding negotiations taking place between the United States of America and the Islamic Republic of Iran,” the statement said.
Even with Monday’s decline in oil prices, crude is trading about 45% higher than it was before the start of the Iran war in late February. Americans are paying an average of $3.96 for a gallon of gasoline, up more than $1 per gallon from one month ago, according to AAA.
With stocks challenging the boundary between consolidation and a larger downturn, the market woke up to some potentially good news out of the Middle East on Monday, but follow-through on any relief rally will likely require tangible follow-through on the geopolitical front.
“The market’s move today is more about the direction that they can tell the administration wants to go, but I would view getting something done this week that just brings things back to normal with a heavy dose of skepticism, given all the various complications,” Ross Mayfield, Baird investment strategist, told CNBC.
Before Monday’s rebound, the Dow and Nasdaq Composite were each threatening to fall into correction territory, a 10% pullback, with both down around 9.8% from their record levels through Friday. The S&P 500 was off by 7% from its high before Monday’s turnaround.
The Dow and Nasdaq fell around 2% each last week, while the S&P 500 lost 1.5% as the Iran conflict continued to drag down markets. For the Dow, it was the first four-week losing streak since 2023.
