US stock index futures were in green on Tuesday as oil prices declined and investors reacted to signs that the conflict involving Iran could be nearing an end.
The rebound followed remarks from US President Donald Trump suggesting the military campaign was progressing faster than expected, easing some concerns about prolonged disruptions to global energy supplies.
Futures tied to the Dow Jones Industrial Average gained around 17 points, or about 0.03%, while S&P 500 futures rose 0.02%.
Nasdaq 100 futures added roughly 0.07% as investors cautiously returned to risk assets.
The market’s direction remained closely tied to developments in energy markets after oil prices had surged sharply in recent sessions amid fears that the Middle East conflict could disrupt global supply.
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Oil prices fall after Trump comments on Iran conflict
Oil prices declined on Tuesday after a volatile session the previous day.
West Texas Intermediate crude futures fell about 6.8% to around $88.43 per barrel, while Brent crude dropped 7.5% to roughly $91.5 per barrel.
Prices had previously surged close to $120 per barrel as concerns grew about disruptions to shipments through the Strait of Hormuz, a key route for global energy flows.
The pullback followed comments from President Trump indicating that the conflict may end sooner than initially expected.
“We’re achieving major strides toward completing our military objective,” Trump said, reinforcing earlier comments that the military campaign could soon conclude.
Speaking at a press conference, the president also emphasized the importance of maintaining energy supply.
“We are also focused on keeping energy and oil flowing to the world.”
Markets had already rallied late Monday after Trump told CBS News that “the war is very complete, pretty much.”
The president also said the United States was “very far” ahead of his previously stated timeline of four to five weeks for the conflict.
Investors watch energy markets and inflation risks
Despite the rebound in equities, uncertainty about energy markets continues to shape investor sentiment.
Iran has said it will continue its oil blockade in the region, while energy producers across the Middle East have yet to fully resume production. Shipping costs are also expected to remain elevated for some time.
The Group of Seven energy ministers is scheduled to meet virtually to discuss the possibility of releasing strategic oil reserves to stabilize markets.
International Energy Agency Executive Director Fatih Birol said the conflict was “creating significant and growing risks for the market,” while noting that options including the release of emergency oil stocks had been discussed.
Experts warned that oil markets remain sensitive to further disruptions.
Amin Nasser, chief executive of Saudi oil giant Aramco, also warned that the conflict could have “catastrophic consequences for the world’s oil market.”
Travel stocks rebound while energy shares fall
Lower oil prices helped support sectors that had been under pressure from rising fuel costs.
Airline stocks including American Airlines and Delta Air Lines gained in premarket trading.
Energy companies, however, declined as crude prices fell.
Shares of Occidental Petroleum dropped around 3.4%, while Exxon Mobil and ConocoPhillips traded slightly lower.
Technology stocks continued to show resilience, helping limit broader market losses during the recent volatility.
Nvidia fell about 0.2%, while storage companies SanDisk and Western Digital rose around 1%.
Elsewhere, Hewlett Packard Enterprise gained after forecasting second-quarter revenue above expectations.
Enterprise software company Oracle also gained around 1% ahead of results due after the market close.
Cryptocurrency-related stocks moved higher as well.
Strategy and Coinbase each rose about 2%, tracking a roughly 4% rise in Bitcoin.
Market participants will now focus on upcoming inflation data later this week, which may offer further clues about the Federal Reserve’s policy path as energy price volatility continues to influence the economic outlook.
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