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](/stocks/LMT) and [RTX](/stocks/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.

Trump Calls Off Iran Attack, Markets Respond