Trump Calls Off Iran Attack, Markets Respond
President Trump halted the planned attack on Iran, and the Dow Jones futures remained stable. Moody's Chief Economist warned of potential inflation and economic weakness if a war were to occur. The move is a relief for the markets, which had been preparing for a potential conflict.
President Trump publicly called off a planned US strike on Iran late Monday, sending geopolitical risk premiums lower across oil, defense, and broad equity benchmarks. WTI crude pulled back from session highs and the S&P 500 trimmed losses on the headline, a reversal of the risk-off tone that had dominated the session.
The decision lifts an immediate overhang on energy supply chains in the Strait of Hormuz, where roughly 20% of global seaborne crude transits. Defense names including LMT and RTX gave back part of their geopolitical premium intraday, while airline and travel stocks rallied on the easing fuel-cost outlook.
The de-escalation is conditional, not resolved. Markets will now watch for renewed nuclear talks, sanctions guidance from Treasury, and any retaliatory posture from Tehran or its proxies. A re-escalation could rapidly reverse today's relief rally, especially in oil and shipping-exposed names.
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