Dow Futures Soar Over 600 Points, Crude Tanks Over 11% As US-Iran Deal Reportedly Advances — But Trump Warns ‘Bombing Starts’ If Talks Fail

• This comes amid an Axios report that the U.S. and Iran are closing in on a one-page memo to end the ongoing war.
• The one-page memo would declare an end to the war and start a 30-day negotiation period with respect to Iran’s nuclear program, the reopening of the Strait of Hormuz, and the lifting of U.S. sanctions.
• The moratorium on Iran’s nuclear enrichment program could be for a period of 12 to 15 years.

U.S. stock futures soared in Wednesday’s pre-market session after reports suggested that the United States and Iran are closing in on a deal.

Futures of the Dow Jones Industrial Average (DJIA) soared more than 600 points to hover above the 50,000 level, while the S&P 500 index futures surged 1% at the time of writing. Futures of the Nasdaq Composite were up around 1.7%.

This comes amid an Axios report that the U.S. and Iran are closing in on a one-page memo to end the ongoing war. The two sides are also negotiating on a framework for more detailed nuclear discussions. Iranian responses are expected in the next 48 hours.

The one-page memo would declare an end to the war and start a 30-day negotiation period with respect to Iran’s nuclear program, the reopening of the Strait of Hormuz, and the lifting of U.S. sanctions. The moratorium on Iran’s nuclear enrichment program could be for a period of 12 to 15 years, the report added.

Trump Issues New Warning

President Donald Trump stated in a post on Truth Social that if Iran agrees to the terms, Operation Epic Fury will come to an end, as with the Strait of Hormuz blockade. He added that this will open the strait for everyone, including Iran.

However, he also issued a new warning to Iran. “If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before,” he said.

Crude Oil Tanks Nearly 12%

Meanwhile, crude oil prices tanked on Wednesday. U.S. West Texas Intermediate (WTI) crude futures expiring in June were down nearly 12%, hovering around $90 a barrel. Brent crude futures expiring in July fell 11% to hover around $98 a barrel.

The United States Oil Fund ETF (USO) fell about 12%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) declined 17%.

Trump Pauses Strait Of Hormuz Mission

On Tuesday, President Donald Trump paused the Strait of Hormuz mission to guide vessels through the critical waterway, citing “great progress” made with Iranian representatives for a final agreement with the country.

“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” he said in a post on Truth Social.

U.S. equities gained in Wednesday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.9%; the Invesco QQQ Trust ETF (QQQ) rose 1.47%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained  1.07%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bullish’ territory.

Also See: SMCI Stock On Track For Best Single-Day Gains In 15 Months As Margins Pump Up Wall Street And Main Street

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