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U.S. stock markets surged Monday (March 23) after President Donald Trump announced that the United States and Iran had held "very good and productive" talks, prompting him to postpone planned military strikes on Iranian energy infrastructure for five days.
The Dow Jones Industrial Average closed up 631 points, or 1.38%, while the S&P 500 gained 1.15% and the Nasdaq rose 1.38%. All 11 S&P sectors finished in positive territory.
Trump posted on Truth Social early Monday that he had ordered the Department of Defense to delay strikes on Iran's power and energy facilities while talks between the two nations continue throughout the week. The announcement reversed a sharp escalation from the weekend, when Trump had threatened to "obliterate" Iran's power plants if the Strait of Hormuz was not fully reopened by Monday evening.
Despite the market optimism, Iran's Foreign Ministry spokesperson Esmaeil Baghaei flatly rejected Trump's claims, stating that Iran has held "no dialogue" with the United States. Markets pulled back from their session highs after the Israel Defense Forces confirmed it was continuing strikes on Tehran.
Oil prices fell sharply on the news. Brent crude dropped nearly 11% to settle at $99.94 per barrel, its first close below $100 since March 11. U.S. benchmark West Texas Intermediate (WTI) crude sank more than 10% to settle at $88.13 per barrel. Despite Monday's declines, oil prices remain roughly a third higher than they were before the U.S. and Israel launched attacks on Iran on February 28.
Travel and consumer stocks led the market higher. United Airlines and American Airlines both rose more than 3.5%, and Norwegian Cruise Line surged 6.2%. The Russell 2000 index of smaller stocks climbed 2.7% after slipping into correction territory on Friday. European markets also reversed course, with Germany's DAX closing up 1.2% and the Stoxx 600 gaining 0.6%.
Gold fell more than 3%, extending a recent slide, while the U.S. dollar index dipped 0.5%. The 10-year Treasury yield retreated to 4.334% after earlier touching 4.4%. Bitcoin jumped roughly 4%, trading near $71,000.