Trump Calls Off Iran Strikes Again, Futures Jump

President Donald Trump called off planned strikes on Iran for a second time, citing ongoing negotiations. Iran has not responded to the move and insisted no final decision has been made.

Futures on the S&P 500 and Nasdaq 100 jumped on the news, with traders pricing out the immediate risk of a military confrontation in the Middle East. The Dow Jones Industrial Average futures rose more than 200 points in early trading.

The back-and-forth over military action has kept markets on edge for weeks. Trump initially approved strikes in retaliation for Iran's downing of a U.S. drone, then called them off minutes before they were set to begin. The latest reversal follows a similar pattern.

Iran's foreign ministry said it had received no official communication from Washington about the cancellation. "No final decision has been made on any front," a spokesman said, without elaborating.

Oil prices gave back some of their recent gains. Brent crude fell 1.5% to $64.50 a barrel, while West Texas Intermediate dropped to $57.80. The pullback reflected reduced fears of a supply disruption in the Strait of Hormuz.

Defense stocks, which had rallied on the prospect of a conflict, slipped in premarket trading. Lockheed Martin and Raytheon each fell about 1%.

The diplomatic channel remains open, Trump said, without specifying a timeline for talks. Iran has so far rejected direct negotiations with the U.S. under the current administration.