US stock markets opened higher on Monday, marking the start of the month with a broad-based rally driven by a sudden de-escalation in Middle East tensions.
The positive sentiment followed President Donald Trump’s announcement on Sunday evening that he had scrapped plans to launch an attack on Iran.
The decision to stand down from military action immediately alleviated fears of a supply disruption in the Persian Gulf, sending oil prices lower and lifting investor confidence across Wall Street.
The market reaction was swift, with equities gaining ground as the geopolitical risk premium evaporated.
Brent crude and other energy benchmarks retreated from recent highs, reflecting the reduced probability of a conflict-induced supply shock.
The pivot away from confrontation provided a clear catalyst for the day’s trading, allowing risk assets to rebound after a period of uncertainty.