US futures rise after Trump cancels Iran strikes, oil falls

U.S. stock futures rose on Monday, August 3, 2026, as investors reacted to a de-escalation of tensions with Iran and a subsequent sharp drop in oil prices. The market movement followed an announcement by President Donald Trump that he had canceled planned military strikes and that diplomatic talks with Tehran were set to resume.

Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all posted gains in early trading. The prospect of renewed diplomacy pushed energy prices lower, with Brent crude and West Texas Intermediate crude both falling more than 5%. Lower oil prices eased concerns that inflationary pressures could worsen, contributing to a modest retreat in Treasury yields.

President Trump stated that discussions aimed at reopening the vital Strait of Hormuz would begin on Monday. However, Iranian officials quickly disputed the U.S. characterization of events, with one report quoting officials dismissing the claim that Tehran requested a pause as a lie and stating that military forces remain on high alert. This response underscored the ongoing geopolitical uncertainty even as financial markets welcomed the reduced immediate risk of conflict.