United States stock futures moved higher on Thursday night (Friday AEDT) after President Donald Trump extended a deadline for potential strikes on Iran’s energy infrastructure, signalling continued efforts to reach a negotiated resolution.
By 10:25 am AEDT (11:25 pm GMT), futures tied to the Dow Jones Industrial Average were up 0.4%, while S&P 500 futures and Nasdaq 100 futures each gained 0.3%.
Oil markets remained elevated amid ongoing supply concerns. Brent crude futures rose 4.8% to US$101.89 per barrel, while West Texas Intermediate crude settled 4.6% higher at $94.48 per barrel.
The gains in futures followed Trump’s announcement that he would extend a pause on attacks targeting Iran’s energy facilities until 6 April, beyond the original deadline set to expire on Friday.
“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction,” Trump said in a Truth Social post. “Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well. Thank you for your attention to this matter!”
The extension is the latest indication that the Trump administration is pursuing a diplomatic end to the conflict, which has driven a sharp increase in oil prices and heightened volatility across global markets.
Elevated fuel costs have already impacted consumers and are seen as a potential political risk ahead of upcoming midterm elections.
A resolution to the conflict would likely provide support for equities, which have come under pressure since U.S. and Israeli strikes on Iran’s energy infrastructure began on 28 February.
Despite the more conciliatory tone from Washington, uncertainty remains. Iran’s foreign minister reportedly stated earlier this week that Tehran has no intention of engaging in talks with the United States, even as officials review a U.S. proposal aimed at ending the conflict.
These mixed signals weighed on Wall Street during the previous session. The Dow Jones Industrial Average declined 1%, the S&P 500 fell 1.7%, while the Nasdaq Composite dropped 2.4%, leaving the technology-heavy index in correction territory.
For the week, performance across major indices remained mixed. The S&P 500 and Nasdaq Composite are on track to post losses of 0.5% and 1.1%, respectively, while the Dow was the only major index heading for a gain, up 0.8% over the same period.
