Stocks rise after reported U.S.-Iran deal to halt attacks

U.S. stock futures rose Sunday evening after Axios reported that the United States and Iran had agreed to stop attacks on each other and hold talks in Qatar. The move mattered for investors because recent fighting around the Strait of Hormuz has threatened shipping through one of the world’s most closely watched oil routes.

Futures tied to the Dow Jones industrial average were up 101 points, or 0.19%, Fortune reported. S&P 500 futures gained 0.45%, while Nasdaq futures rose 0.64%, according to the same report.

Oil prices also moved higher, showing that traders remained wary of the risk to energy flows. U.S. crude futures rose 1.5% to $70.29 a barrel, and Brent crude advanced 1.1% to $72.80, Fortune reported.

Axios, citing sources, reported that Washington and Tehran agreed to halt strikes and meet Tuesday in Qatar to address disputes over the Strait of Hormuz. The reported agreement followed a weekend in which violence in the Persian Gulf had intensified despite an earlier ceasefire.

Fortune reported that Iran launched new attacks Sunday on Kuwait and Bahrain and threatened a “complete halt” to peace talks. The strikes followed a cycle of retaliation after U.S. airstrikes targeted Iran in response to drone attacks on commercial vessels, according to Fortune.

The dispute centers partly on rival approaches to shipping through Hormuz. Fortune reported that Iran has sought to shut an alternate route through the strait protected by the United States, while Tehran has backed a separate channel intended to reinforce its control over the passage.

President Donald Trump accused Iran of breaking the two-week-old ceasefire agreement, Fortune reported. In a Truth Social post cited by Fortune, Trump wrote: “There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started.” He added: “If that happens, the Islamic Republic of Iran will no longer exist!”

At the same time, Fortune reported that Trump has signaled reluctance to resume a broader war. Gulf traffic data cited by Fortune showed a convoy of tankers moving through the strait Sunday under escort with transponders switched on, a sign the U.S. Navy was trying to show the alternate route remained open.

Analysts cited by Fortune warned that the standoff could still worsen. HFI Research said on X that if the Oman route were blocked, the United States would face a choice between escalation and allowing Iran’s Islamic Revolutionary Guard Corps to control the Strait of Hormuz.

Iranian officials continued to assert authority over the waterway. Foreign Minister Abbas Araghchi said Sunday, according to state media cited by Fortune, that the U.S.-Iran memorandum of understanding gives Iran exclusive responsibility for managing traffic.

“The management and full restoration of maritime traffic in the Strait of Hormuz is Iran’s responsibility,” Araghchi said, according to state media cited by Fortune. “No other country or entity has any responsibility or authority in this matter.”

Investors also face a shortened trading week in the United States, with Independence Day observed Friday, July 3, Fortune reported. The Labor Department’s monthly jobs report is due Thursday, and Wall Street expects June payrolls to rise by 118,000 after a 172,000 gain in May, with unemployment steady at 4.3%, according to Fortune.

This story draws on original reporting from Fortune.