US equity futures pointed higher as traders priced in growing optimism around a potential peace framework between Washington and Tehran. The S&P 500 and Nasdaq have already touched record highs on deal-related sentiment in recent weeks, and the mood heading into the session suggested more of the same.
The deal on the table
The US and Iran are reportedly nearing a preliminary agreement to extend a ceasefire by 60 days. A temporary ceasefire was first announced on April 7, and negotiators from both sides have since worked through a series of de-escalation steps that have gradually eased tensions in the region.
Oil prices have drifted toward multi-week lows as the perceived risk of a major supply disruption has faded. Stocks have responded accordingly, with major indices pushing into record territory during May.
But final approval still hinges on President Trump, and implementation details remain a moving target. That uncertainty has kept a lid on the most aggressive positioning, with many traders describing a sense of “headline fatigue” after weeks of whiplash between escalation and de-escalation.
