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Stocks rose sharply and oil prices dropped on Monday after President Donald Trump said the United States had held discussions with a senior Iranian figure and expressed interest in reaching a deal with Tehran.
The Dow Jones Industrial Average climbed about 900 points, or nearly 2 percent. The S&P 500 and the Nasdaq composite each rose by more than 1 percent, while the Russell 2000 index, which tracks smaller companies, jumped nearly 3 percent.
All sectors of the S&P 500 were higher in early trading. Consumer discretionary stocks led gains, rebounding after recent declines driven by concerns that higher gasoline prices could reduce consumer spending.
Oil prices fell significantly amid signs that tensions in the Middle East could ease. Brent crude, the international benchmark, dropped more than 10 percent, falling below $100 per barrel. West Texas Intermediate, the U.S. benchmark, also declined by about 10 percent.
In a post on Truth Social, Trump said discussions with Iran had been positive.
“I AM PLEASED TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST. BASED ON THE TENOR AND TONE OF THESE IN DEPTH, DETAILED, AND CONSTRUCTIVE CONVERSATIONS, WHICH WILL CONTINUE THROUGHOUT THE WEEK, I HAVE INSTRUCTED THE DEPARTMENT OF WAR TO POSTPONE ANY AND ALL MILITARY STRIKES AGAINST IRANIAN POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A FIVE DAY PERIOD, SUBJECT TO THE SUCCESS OF THE ONGOING MEETINGS AND DISCUSSIONS,” President Trump wrote.
In a phone interview with CNBC, Trump said the United States was eager to reach an agreement.
“We are very intent on making a deal with Iran,” he said.
“They want, very much to make a deal. We’d like to make a deal too,” President Trump said. “We’re going to get together today by, probably, phone, because it’s … very hard for them to get out, I guess. But we’ll, at some point, very, very soon, meet.”