Dow Soars Over 600 Points, Crude Oil Prices Plummet Amid A Pause In Iran Strikes

• U.S. West Texas Intermediate crude futures expiring in September were down 6.06%, hovering around $83.92 a barrel.
• U.S. Ambassador to the United Nations Mike Waltz said during an interview with NBC News on Sunday that President Donald Trump is giving talks some space.
• Waltz added that Iran's negotiators appear divided, with some seeking guidance from Supreme Leader Ayatollah Mojtaba Khamenei while others favor a different path.

U.S. equities soared in Monday morning’s trade after the strikes between the United States and Iran came to a pause over the weekend.

The Dow Jones Industrial Average (DJIA) soared more than 660 points to rise to 52,608 before paring some of the gains. The S&P 500 index gained about 0.8%, while the Nasdaq Composite rose about 0.7%.

U.S. Ambassador to the United Nations Mike Waltz said during an interview with NBC News on Sunday that President Donald Trump is giving talks some space.

“Talks are ongoing. They’re happening at every level, from the more technical aspect of it all the way to the highest levels,” he said. However, he also reiterated that the U.S. military is “locked and loaded,” with Trump keeping all options on the table should the need arise.

Crude Oil Prices Tumble

Crude oil prices tumbled on Monday amid the temporary halt in strikes between the United States and Iran. U.S. West Texas Intermediate (WTI) crude futures expiring in September were down 6.06%, hovering around $83.92 a barrel. Brent crude futures expiring in September fell 5.24% to hover around $86.88 a barrel.

The United States Oil Fund ETF (USO) fell more than 6% at the time of writing, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) declined about 7%.

Iranians Divided, Says Waltz

Waltz added that the U.S. has observed that the Iranian side is divided, with some of the negotiators involved seeking guidance from Supreme Leader Ayatollah Mojtaba Khamenei, while others want to move in a different direction.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei told reporters in Tehran that the U.S. enters talks every time there is a surge in energy prices, according to a report by Al Jazeera.

“Now, months later, America is stuck in this place and they are proud of its crimes,” he added, while stating that Iran has never allowed the U.S. to determine the time of war or peace.

“The Americans are struggling in their current situation, they have caused this. They have done this and now they are stuck. Our decision depends and relies on our national interests,” he said.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, gained 0.41%; the Invesco QQQ Trust ETF (QQQ) rose 0.28%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.88%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘extremely bearish’ territory.

Also See: 'The Big Short' Investor Steve Eisman Warns Markets Will Go 'Straight Down' If Any Hyperscaler Cuts Capex

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