US equity futures advanced on Monday as crude oil prices retreated sharply from their intraday peaks, driven by emerging signs of diplomatic progress between the United States and Iran.
The pullback in energy costs helped offset lingering geopolitical anxieties, allowing broad market indices to find footing after a volatile weekend.
Brent crude and WTI benchmarks softened as traders digested reports that the two nations have agreed to halt retaliatory strikes that began over the weekend.
This development marks a significant de-escalation in tensions that had previously threatened to disrupt global supply chains and keep a risk premium embedded in energy markets.
The prospect of a formal peace agreement injected a wave of relief into risk assets, reversing earlier selling pressure.
Wall Street’s major indices, including the S&P 500, Nasdaq-100, and Dow Jones Industrial Average, all traded higher in pre-market activity.