U.S. Stock Futures Surge After WSJ Report on Trump's Iran War Exit Strategy

U.S. stock index futures climbed sharply Monday evening, erasing earlier losses after the Wall Street Journal reported that President Donald Trump is weighing an end to the Iran conflict even if the Strait of Hormuz remains closed. By 9:43 PM ET, S&P 500 futures had gained 0.9% to 6,446.75, Nasdaq 100 futures jumped 1% to 23,364.0, and Dow Jones futures rose 1% to 45,902.0 — a notable turnaround after a broadly negative regular trading session.

The WSJ report, citing administration officials, indicated Trump told aides he is prepared to wind down military operations in Iran once key objectives are met — namely, degrading Tehran's naval capabilities and missile stockpiles. Rather than extending the conflict to force Hormuz open, Washington plans to pursue diplomatic pressure on Iran while encouraging European and Gulf allies to take the lead on restoring passage through the strait. This strategic pivot could signal a broader de-escalation, particularly since Iran has consistently demanded a halt to hostilities before engaging in any formal negotiations.

The Strait of Hormuz remains a critical flashpoint, as the waterway handles approximately 20% of global oil supply. Oil prices had surged over the past month amid Iran's effective blockade, though they pared some gains following the WSJ report.

During the regular Monday session, markets struggled under the weight of ongoing geopolitical uncertainty and persistent weakness in tech stocks, driven by concerns over slowing AI chip demand. Iran's rejection of ceasefire proposals, continued attacks on Israeli and Gulf targets, and fresh Houthi strikes added to investor anxiety. The S&P 500 slipped 0.4%, the Nasdaq fell 0.7%, while the Dow edged up just 0.1%.

Investors will be closely watching further diplomatic developments as Trump navigates one of the most volatile geopolitical crises in recent memory.