Dow soars 500 points, oil slides over 5% after Trump announces new Iran peace talks
Stocks soared Monday morning and oil prices slid more than 5% after President Trump over the weekend announced new peace talks with Iran and called off “massive” attacks on the nation.The Dow Jones Industrial Average surged 586 points, or 1.1%, by about 9:50 a.m.ET while the S&P 500 and Nasdaq jumped 0.7% and 0.9%, respectively.Brent crude oil prices plummeted 5.7% to $82.93 a barrel while West Texas Intermediate crude fell 7.2% to $78.55 – though national average gasoline prices, which typically lag oil by one to two weeks, remained stubbornly above $4 a gallon. Speaking to reporters Sunday, Trump said new Iran peace talks would start Monday as he called off “massive” planned attacks on the nation following appeals from several Gulf state allies.“I was asked to by Saudi Arabia, by UAE, by Qatar, and by Iran,” he told reporters aboard Air Force One when asked why he aborted the strikes.
“We were all set to go.”But Trump said the Saudi crown prince assured him that Iran was ready to make a deal including agreements on its nuclear program and the Strait of Hormuz, a vital maritime route for global oil supplies that has been blockaded for months amid the war.The Iranian government on Monday flat-out rejected Trump’s claims, with officials stating that no talks with the US were taking place or scheduled.But traders were hopeful for a permanent peace deal as they sought to stabilize markets on the first trading day of the new month, after a particularly volatile July.The Trump administration has been eager to mollify Americans’ concerns about rising energy prices ahead of the midterm elections – and a permanent deal to reopen the strait would certainly help, experts say.In the meantime, officials are reportedly considering reopening defunct petroleum refineries from the Virgin Islands to California in an effort to tamp down prices at the pump, according to a Politico report last week.White House officials have held talks with the US Environm...