U.S. President Donald Trump said the United States will restart talks with Iran on Monday, easing tension in the Middle East and shifting the tone across global markets. Oil opened sharply lower, U.S. equity futures moved higher, the dollar weakened, and traders turned their attention to the yen after last week’s joint currency intervention by the U.S. and Japan.
Brent crude falls more than 7% at the open
Brent crude dropped more than 7% at the open as markets priced in the prospect of renewed U.S.-Iran negotiations. Trump said the U.S. had agreed to cancel a previously planned large-scale military operation against Iran, following requests from Saudi Arabia and other Middle Eastern allies, and would instead seek to reopen the Strait of Hormuz through negotiations.
Oil also came under pressure from a modest increase in production quotas by OPEC+, a step that added to easing concerns over supply tightness and the inflation pressure tied to it.
Risk appetite returns as S&P 500 futures rise
As the threat of a supply-chain shock linked to Middle East conflict began to ease, risk appetite improved. S&P 500 futures traded higher in early hours, extending momentum from Friday’s 0.7% gain in the cash market.
In foreign exchange, AUD/USD led gains among risk-sensitive pairs, signaling a move out of haven assets and back into higher-risk trades. Markets had been dealing with the prospect that a conflict lasting as long as six months could unsettle stocks, bonds, and currencies. That pressure has started to ease.
Yen becomes the center of attention after joint intervention
Beyond geopolitics, the main focus in FX was the yen. After coordinated action by Tokyo and New York last week triggered a sharp rebound in the Japanese currency, traders were watching for another round of intervention.
Trump described the move as a “signal of friendship.” Japanese Finance Minister Satsuki Katayama was expected to formally announce joint action by the two governments as soon as Monday. U.S. Treasury Secretary Scott Bessent also conveyed strong support through the media.
Bitcoin rebounds after slipping below 63K
In crypto markets, Bitcoin briefly fell below 63K over the weekend, then recovered as signs emerged that U.S.-Iran tensions were easing. The Fear and Greed Index rose from 32 to 35, though it remained near the upper end of the fear zone.
The Altcoin Season Index climbed to 57. Among sector moves, the Binance ecosystem segment posted the biggest gain.