Futures for the S&P 500 rose 1% before the opening bell, while futures for the Dow Jones Industrial Average climbed 1.2%. Nasdaq futures jumped 1.7%.
The White House believes it is nearing an agreement with Iran on a one-page memorandum to end the war, according to reporting by Axios. It said provisions include a moratorium on Iranian uranium enrichment, a lifting of U.S. sanctions and the distribution of frozen Iranian funds and the opening of the Strait of Hormuz for ships.
Wang Yi, speaking after meeting with Iranian Foreign Minister Abbas Araghchi, said China was “deeply distressed” by the conflict. Araghchi was visiting Beijing for the first time since the war with the U.S. and Israel started Feb. 28.
China’s close economic and political ties to Tehran give it a unique position of influence. The Trump administration is pressing China to use that relationship to urge the Islamic Republic to open the Strait of Hormuz.
News that Iranian officials were traveling to China ahead of a summit between U.S. President Donald Trump and Chinese leader Xi Jinping lifted market sentiment.
Oil prices spiraled soon after Wang's comments, with prices for a barrel of U.S. crude falling more than $13 to $88,88 per barrel. Brent crude, the international standard, retreated $12.66 to $97.21 a barrel, extending declines that erased big jumps earlier in the week. The prices still remain well above their roughly $70 price before the war with Iran began.
Sinking oil prices sent energy giants shares sliding overnight, with Chevron, Exxon Mobil and ConocoPhillips all seeing losses of close to 5%.
The prospect of lower jet fuel prices pushed major U.S. airlines up, with Delta, United and American all gaining more than 6% in premarket trading.
