The S&P 500 index rose on Monday on swings in oil prices as traders hoped the war between the US and Iran could end soon.
The broad market index rose 0.4%, while the Nasdaq Composite gained 0.5%. The Dow Jones Industrial Average rose by 137 points, or 0.3%.
Axios reported that the US, Iran and a group of regional mediators are discussing the terms of a potential 45-day truce that could lead to a permanent end to the war, although the chances of reaching a partial deal before Tuesday’s deadline are slim. Certainly, a 45-day truce is only one of many ideas being mentioned.
Reuters also reported that Iran and the US have agreed on a plan to end hostilities that, if agreed, would result in an immediate ceasefire and the reopening of the Strait of Hormuz. The framework, which could come into force on Monday, was drawn up by Pakistan, an unnamed source told Reuters.
President Donald Trump reiterated his position on Monday that the US will destroy Iran’s energy plans and bridges if the Middle Eastern country does not open the strait by 8pm ET on Tuesday. On Sunday, he warned of an attack on that infrastructure.
The president also said that while he wants to take Iran’s oil, he “won’t go any further.”
“What would I like to do? Take the oil, because it’s there for the taking,” he continued. “There’s nothing I can do about it. Unfortunately, the American people would like us to come home.”
Oil prices jumped sharply in volatile trading at the beginning of the week, reports SEEbiz US West Texas Intermediate for May last rose 0.7% to above $112 per barrel. International benchmark Brent crude oil prices rose 0.6% to above $109 a barrel.
The CBOE Volatility Index, or VIX, similarly remained elevated after Trump’s comments. The last time it was above 24.
