Oil Prices Plummet 6.2% After Trump Cancels Iran Strike Plan

US stock futures rise and oil prices drop sharply following the cancellation of military strikes against Iran, with Brent crude falling 5.2%.

Woofun AI reports that US President Donald Trump announced the cancellation of a planned military strike against Iran, stating that negotiations between the two sides would resume on Monday. This development triggered a surge in market risk appetite, causing US stock futures to rise. Dow Jones Industrial Average futures increased by approximately 535 points, or 1%, while S&P 500 Index futures rose by 0.6% and Nasdaq 100 Index futures gained 0.2%.

In the energy sector, expectations of easing Middle East tensions led to a rapid decline in oil prices. Brent crude oil fell by 5.2% to $83.39 per barrel, and WTI crude oil futures dropped by 6.2% to $79.45 per barrel. US Treasury yields also declined, with the 10-year yield dropping by 6 basis points to 4.68%, as investors anticipated reduced inflationary pressure from lower energy costs. Market institutions advised caution, noting uncertainty regarding the conflict's resolution. This week, attention will shift to US employment data, with FactSet estimating July non-farm payrolls at 87,500 and the unemployment rate rising to 4.3%.