U.S. stock futures pointed higher on Monday, buoyed by reports that mediators were attempting to forge a temporary ceasefire in the war in Iran.
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By 06:14 ET (10:14 GMT), the Dow futures contract was mostly unchanged, S&P 500 futures had gained 18 points, or 0.3%, and Nasdaq 100 futures had risen by 132 points, or 0.6%. Major European stock markets were largely closed for a holiday, while trading was thin in Asia.
Both the U.S. and Iran have received a framework of a plan to halt hostilities, although Tehran has rebuffed any immediate reopening of the Strait of Hormuz, Reuters reported, citing a source aware of the proposals.
The plan -- brokered by Pakistan following overnight contacts with U.S. and Iranian officials -- would start an immediate ceasefire followed by talks on a broader settlement to be concluded withing 15 to 20 days, Reuters reported.
Axios first reported Sunday that the U.S., Iran and regional mediators were discussing a potential 45-day ceasefire as part of a two-phase deal that could lead to a permanent end to the war, citing U.S., Israeli and regional sources.
These reports come after U.S. President Donald Trump threatened to hit Iranian power plants should Tehran not move to unblock the Strait of Hormuz, a critical waterway through which roughly one-fifth of the world’s oil flows, by Tuesday evening.
Trump had previously imposed a Monday deadline for Iran make a deal and open the strait.
Front-month Brent crude oil futures, the global benchmark, were last lower by 0.5% at $108.45 a barrel, after briefly topping $110 a barrel earlier in the session. U.S. West Texas Intermediate crude futures fell by 0.1% to $110.46.
Despite the declines, oil prices remain well above pre-war levels, placing upward pressure on inflation in countries around the world and threatening to weigh on global growth. Government bond yields have risen as well, reflecting bets that central banks may have to raise interest rates in response to renewed price gains.
More insight into the effect of the Iran conflict on inflation could come later this week, when fresh consumer price data for March is due to be released.
