U.S. Stocks End Monday in Green

(MENAFN) US equity markets closed firmly in the green on Monday, with the S&P 500 and Nasdaq fully recovering all losses sustained since the outbreak of the Iran war, as investors recalibrated their outlook on the basis that a diplomatic resolution between Washington and Tehran remains within reach — even as a new US naval blockade on Iranian ports took effect.

The Dow Jones Industrial Average climbed 0.63%, adding 301.68 points to close at 48,218.25. The Nasdaq Composite surged 1.23%, gaining 280.84 points to finish at 23,183.74, while the S&P 500 rose 1.02%, up 69.35 points to 6,886.24 — pushing both indices above the levels recorded before hostilities erupted in late February.

The rebound reflects a swift turnaround in market sentiment, fueled by last week's temporary ceasefire agreement between Washington and Tehran and the early momentum of the US earnings season. Technology stocks provided the strongest tailwind for broader gains.

Confidence received an additional boost after President Donald Trump told reporters that Iran had directly contacted his administration seeking an agreement, remarking that "they'd like to make a deal very badly." The statement helped ease earlier jitters triggered by the US blockade announcement.

Markets had opened the week under pressure following the collapse of weekend negotiations between the two sides in Islamabad without a breakthrough. Sentiment gradually stabilized, however, as signals from Washington indicated that diplomatic back-channels remain active. Pakistan, Egypt, and Türkiye are expected to continue serving as mediators in the coming days, according to Axios, citing a regional source and a US official.

Oil prices seesawed through the session, initially surging on supply disruption fears linked to the Strait of Hormuz before retreating from intraday highs. Brent crude settled at $99.36 a barrel, with West Texas Intermediate closing at $99.08 — keeping both benchmarks near the psychologically significant $100 threshold and reflecting enduring anxiety over Gulf energy flows.

International Energy Agency Executive Director Fatih Birol cautioned that current market prices have yet to fully reflect the true extent of the damage on the ground. "I agree there's a disconnect there, but I think soon we will see that they will converge," he said, flagging serious risks to the global economy.

Birol added that more than 80 energy facilities across the Middle East have sustained damage since the conflict began on Feb. 28, with over one-third classified as severely or very severely impacted. He warned that restoring output to pre-war levels could require as long as two years.

On the domestic economic front, US existing home sales declined 3.6% in March to an annualized rate of 3.98 million — the weakest reading in nine months.

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