Overview
- On Thursday President Trump said he called off scheduled strikes on Iran, a move that helped trigger a sharp drop in oil prices and a rebound in risk assets.
- Iranian Foreign Minister Seyed Abbas Araghchi said a memorandum of understanding has "never been closer," but U.S. officials and Tehran have publicly offered conflicting descriptions of the draft terms.
- Crude futures fell by several percent after the de‑escalation signals as investors priced down the risk of disruptions to shipments through the Strait of Hormuz.
- U.S. equities rallied with chipmakers and AI‑linked stocks leading the gains and the Dow jumping about 930 points on Thursday before finishing the week higher after SpaceX’s IPO surged roughly 19% on debut.
- Markets remain sensitive to further diplomatic confirmations, the status of Iran’s approvals and oil‑flow developments, and investors are watching next week’s Federal Reserve guidance for how lower energy costs might affect policy.