U.S. Futures Slide as Iran Denies Nuclear Talks with Washington

U.S. stock index futures declined Monday evening after Iran officially denied engaging in any diplomatic discussions with Washington, contradicting earlier statements from President Donald Trump that suggested progress toward a de-escalation of the ongoing Middle East conflict now entering its fourth week.

S&P 500 futures dropped 0.3% to 6,614.75, while Nasdaq 100 and Dow Jones futures each fell 0.3% to 24,335.75 and 46,378.0 points respectively, reversing a strong Wall Street session that had seen major indices gain over 1%.

The initial rally was fueled by Trump's announcement that he had postponed a threatened strike on Iran's electricity grid, referencing what he described as "very good and productive conversations" with Tehran. Markets responded positively, interpreting the delay as a potential breakthrough in a conflict that has weighed heavily on investor sentiment for weeks.

However, Iranian officials quickly pushed back. The Speaker of Iran's Parliament denied any such dialogue had occurred, and senior military figure Mohsen Rezaee Miragha'ed signaled through state media that military operations would press on. The contradictory statements left investors uncertain about the true state of U.S.-Iran relations.

Adding further complexity, reports indicated that certain Asian and Gulf nations had been quietly facilitating backchannel communications between the two governments, though direct talks remain unconfirmed. Strikes between Iran and neighboring Gulf states continued throughout Monday evening, offering little indication of a near-term ceasefire.

Oil prices, which had plunged more than 10% earlier in the session on hopes of resolution, rebounded sharply following Iran's denial. Iran's closure of the Strait of Hormuz has triggered significant global energy disruptions, stoking inflation fears across financial markets. Investors are increasingly concerned that sustained oil-driven inflation could push central banks worldwide toward a more aggressive monetary tightening stance in the months ahead.