U.S. stock futures moved higher on Tuesday while oil prices declined after President Donald Trump suggested that the conflict with Iran, now more than a week old, may conclude “very soon.” His remarks helped ease investor anxiety, although Iran has indicated it is prepared to continue the confrontation and has reportedly warned it could block oil shipments through the strategically vital Strait of Hormuz. Meanwhile, cloud-computing company Oracle (NYSE:ORCL) is scheduled to release its latest quarterly earnings after U.S. markets close.
Futures move higher
Futures tied to major U.S. equity indices climbed as investors reacted to signs that the fighting with Iran could soon wind down.
At 04:11 ET, Dow futures were up 140 points, or 0.3%. S&P 500 futures gained 25 points, or 0.4%, and Nasdaq 100 futures rose 127 points, or 0.5%.
Wall Street’s benchmark indices experienced sharp swings on Monday as markets responded to developments in the joint U.S.–Israeli military campaign against Iran.
Early in the session, stocks dropped, oil prices surged and bond yields jumped after Mojtaba Khamenei was named Iran’s next supreme leader — a choice Trump called unacceptable. Mojtaba Khamenei is the son of former leader Ayatollah Ali Khamenei, reinforcing expectations that Iran’s leadership will maintain its hardline approach despite pressure from U.S. and Israeli airstrikes.
Fears of a prolonged conflict in the Middle East and potential disruptions to critical oil flows intensified, raising concerns that a spike in global inflation could delay central bank policy easing and weigh on economic growth.
Later in the day, markets stabilized. Stocks rebounded, oil retreated and bond yields gave back some gains after Trump said in an interview that the U.S. campaign against Iran was “very complete, pretty much.” The volatile session ultimately ended with all three major U.S. indices finishing in positive territory.
“[I]nvestors remain more concerned about missing the rally that will likely accompany the first sign of de-escalation from the White House than they are about being caught long in the event of a further deterioration in Middle Eastern conditions,” analysts at Vital Knowledge said in a note to clients.
Trump says Iran conflict over “very soon”
Trump later stated that the war with Iran would end “very soon,” adding during a press conference that “major strides toward completing our military objective” had already been achieved.
He also described the U.S. and Israeli strikes against Iran as a “tremendous success right now.”
Still, the White House messaging included a note of caution. Trump said the United States “could go further, and we’re going to go further.”
He warned that he would target Iran’s supreme leader if Tehran fails to comply with Washington’s demands and threatened to intensify military action if Iran attempts to disrupt oil shipments through the Strait of Hormuz — the key maritime route that carries roughly one-fifth of the world’s crude supply.
Iranian officials, meanwhile, have reportedly responded by saying that not “one liter of oil” will be allowed to pass through the strait if the U.S. and Israel continue their attacks.
Oil prices decline
Oil prices fell on Tuesday, extending losses following a volatile session in which Trump also pointed to steps aimed at mitigating supply disruptions.
Crude pared some of its earlier declines as uncertainty remained over when the conflict might end and Tehran’s tough stance on potential de-escalation kept markets cautious.
Trump suggested the possibility of allowing certain waivers for oil exports from sanctioned producers — particularly Russia — to offset supply disruptions in the Middle East. At the same time, reports indicated that the Group of Seven nations are considering releasing emergency oil reserves to help stabilize global markets.
By 04:39 ET, Brent crude futures had dropped 7.3% to $91.77 per barrel, while West Texas Intermediate futures fell 6.1% to $85.93 per barrel.
Oil prices had surged to as high as $120 per barrel on Monday after U.S. and Israeli strikes on several Iranian energy installations marked an escalation in the conflict.
Gold edges higher
Gold prices rose modestly but remained within a narrow trading band as investors awaited further developments in the U.S.–Israel conflict with Iran.
The precious metal gained as overall risk sentiment improved following Trump’s remarks about a potential end to the fighting and measures aimed at limiting the surge in oil prices.
However, gold continued trading within the roughly $5,000 to $5,200 per ounce range seen over the past week, as traders weighed a series of uncertainties facing the global economy.
Demand for gold has been partly restrained by concerns that higher oil prices could fuel inflation, potentially prompting central banks to maintain tighter monetary policy and strengthening the U.S. dollar — factors that typically weigh on gold demand among overseas buyers.
The dollar edged slightly lower on Tuesday, suggesting that some inflation worries may be easing.
Oracle earnings in focus
In corporate news, Oracle will publish its quarterly earnings after the closing bell on Wall Street.
Once considered a smaller player in the cloud industry, Oracle has gained increasing prominence through its partnership with OpenAI, which relies on the company’s infrastructure to power artificial intelligence models.
However, investors have grown increasingly cautious about how Oracle plans to finance the massive investment required to build data centers for OpenAI and other major clients, including Meta Platforms. In December, the company said it expects capital spending to reach $50 billion during the current fiscal year, up from an earlier estimate of $35 billion.
To help manage those costs, Oracle is reportedly considering cutting thousands of jobs, according to Bloomberg News. Bloomberg also reported that Oracle and OpenAI have abandoned plans to expand a large AI data center in Texas after extended negotiations over financing.
Oracle shares, which peaked at around $328 in September, were trading at $151.56 ahead of Monday’s session. The stock has declined by more than 22% so far this year.
“[S]entiment is still very cautious around Oracle,” the Vital Knowledge analysts said.
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