U.S. stocks surged Monday after President Trump called off massive strikes on Iran, renewing hopes for a diplomatic deal.
The Dow Jones Industrial Average jumped 600 points, or more than 1%, to start the week, a boom driven by falling oil prices.
Mr. Trump said he decided to cancel a bombardment of Iran upon the request of friendly nations in the Gulf region.
“I was asked to by Saudi Arabia, by UAE, by Qatar, and by Iran. We were all set to go,” Mr. Trump told reporters on Sunday.
He pointed to signs of a possible agreement on the Strait of Hormuz, a critical waterway for oil traffic, and said talks would resume Monday.
Iran clamped down on shipping in the strait in retaliation for Mr. Trump’s airstrikes, which began Feb. 28 to prevent Tehran from obtaining a nuclear weapon.
SEE ALSO: Trump halts strikes on Iran, says peace deal ‘perimeters’ are in place
The cost of Brent crude oil, an international benchmark, dropped about 6% to around $83 per barrel on Monday after Mr. Trump called off strikes.
Turmoil in the Strait of Hormuz and other parts of the Middle East has caused oil prices to jump and recede for months, as the U.S. and Iran go through cycles of diplomatic talks and renewed violence.
U.S. gas prices have been notably higher since the start of the war.
The average price stood at $4.10 per gallon on Monday, little-changed from a week ago but up 38% from when the war started, according to the AAA motor club.
Iran on Monday said it is not talking to the U.S. over control of the Strait of Hormuz, even though Mr. Trump insisted that final negotiations were starting.
Iranian Foreign Ministry spokesperson Esmail Baghaei told a press conference that the only diplomatic conversations Iran is maintaining are with Oman over creating an “understanding on a route that would ensure the safe passage of shipping through the Strait of Hormuz.”
SEE ALSO: Iran says no talks with U.S. expected despite Trump’s assurances
