US stocks surged Monday as investors reacted positively to signs that Iran’s retaliation to American strikes over the weekend was less aggressive than feared. The Dow Jones Industrial Average gained 374.96 points, or 0.89%, closing at 42,581.78. The S&P 500 climbed 0.96% to 6,025.17, and the Nasdaq Composite rose 0.94% to end at 19,630.97.
The market rebound followed Iranian missile attacks on US bases in Qatar and Iraq, described by Iran as a response to strikes on nuclear facilities in Fordo, Isfahan and Natanz. However, the attacks caused no casualties and were intercepted, easing concerns over a broader escalation.
Crude prices plunge on signs of restraint
The muted nature of Iran’s response triggered a sharp sell-off in oil markets. West Texas Intermediate crude futures dropped more than 7%, settling at US$68.51 per barrel, after touching overnight highs above US$78. Brent crude fell nearly 9% intraday.
President Donald Trump added further pressure on oil prices, calling in a Truth Social post for prices to remain low and warning that higher prices “play into the hands of the enemy.” His Energy Secretary Chris Wright credited Trump’s foreign policy for helping de-escalate the situation, telling CNBC the region would become “a much more stable Middle East.”
Still, analysts remain cautious. Iran retains the ability to close the Strait of Hormuz, a critical conduit for global oil flows, and has suggested that further retaliation is possible. US Secretary of State Marco Rubio called on China, Iran’s biggest oil customer, to prevent any disruption.
Tesla’s robotaxi launch lifts shares
Tesla shares jumped 8% after the company launched its long-promised Model Y robotaxi service in Austin, Texas. The service, available by invitation, charges riders a flat US$4.20 fare and has generated social media buzz among fans and investors.
While some early users praised the experience, footage emerged of Tesla robotaxis braking erratically and violating traffic rules. CEO Elon Musk hailed the launch as the culmination of a decade’s work, though critics noted the service lags competitors like Waymo and Baidu’s Apollo Go.
ASX futures rise on global momentum
Australian shares are expected to rally Tuesday, with ASX futures up 64 points (0.8%) after Wall Street’s advance. A reported ceasefire between Israel and Iran, announced by Trump after the US close, could further buoy global sentiment and continue to pressure oil lower.
