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March 24, 2026 – 08:55

(Bloomberg) — Stock futures erased earlier losses and posted a modest gain as sentiment appeared to stabilize heading into the European session amid concerns about the war in the Middle East.

Futures for the S&P 500 Index rose 0.1% and European stocks were primed to gain 0.2%. Futures contracts recovered from losses of as much as 1% during the Asian session. Helping improve the sentiment was crude oil paring its advance. A Bloomberg gauge of the dollar also trimmed its gain.

Earlier, Tresuries fell and crude oil rebounded as as the fragile optimism around a potential de-escalation in Middle East tensions gave way to fresh caution. The yield on the two-year Treasuries rose one basis point to 3.86% on expectations that higher oil prices may boost the chances of an interest-rate hike by the Federal Reserve. Gold was little changed.

Brent pared much of its earlier gains to rise 2% to about $102 a barrel as traders turned cautious after the Wall Street Journal reported that US allies in the Persian Gulf are inching toward joining the fight against Iran. Adding to the downbeat tone earlier, Iran’s deputy speaker ruled out talks with the US, echoing similar comments from other officials in the regime.

The optimistic tone came after stocks rose and oil slumped on Monday as President Donald Trump signaled a delay in strikes on Iranian energy assets. The conflict though showed few signs of easing and the Strait of Hormuz — crucial for the flow of oil from the Middle East — remained effectively shut with only a trickle of vessels making their way through.

The whipsawing markets suggest investors were cautious after Trump’s signal of a delay in strikes, which was seen as a potential step toward de-escalation in the Middle East. Renewed tensions risk keeping oil prices elevated, potentially stoking inflation and reinforcing expectations that policymakers may delay easing or even tighten policy further.

“I will not put too much hope on this bet for now until I see Iran’s next course of action in this war,” said Gerald Gan, chief investment officer at Reed Capital Partners in Singapore. Gan said he has increased his cash exposure, while adding put options on the S&P 500 Index.

What Bloomberg’s Strategists Say…

“Brent opened above $100 a barrel amid signs that conflict in the Middle East is far from over. If there are further signals that send crude prices noticeably higher, then another day of whiplash across assets would be the result.”

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

Trump told reporters on Monday that he was holding off on striking Iranian energy infrastructure for five days, citing “major points of agreement” with the country. The abrupt shift caught traders off guard as there was little sign of diplomatic progress before the US president’s social media post.

“Markets will likely take a cautious approach from here as there is still uncertainty over whether actual talks are being carried out given Iranian denials,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd.

Tensions remained high in the Middle East. A gas pressure-regulation station and an associated administrative building were targeted in Iran’s central Isfahan province in recent US–Israeli attacks, the semi-official Fars news agency reported. Iran also launched a new wave of missiles at Israel.

Markets remain on “hyper alert” for the next development, said Anna Wu, a cross asset strategist at Van Eck Associates Corp.

“Most investors are still waiting for some sort of talk to be confirmed between Iran and the US for clarity,” she said.

Corporate News:

Apollo Global Management Inc. fell 2.6% in extended trading after curbing redemptions from one of its largest non-traded private credit funds for retail investors. Estée Lauder Cos. said it’s in talks to buy Puig Brands SA in a deal that would create a cosmetics giant with about $20 billion in annual sales. The European Union and Australia agreed to a free-trade deal, wrapping up almost a decade of talks as the two sides push to tighten ties and reinvigorate a rules-based order that’s under assault from the Trump administration. Netgear Inc. shares jumped 13% in extended trading after the Federal Communications Commission ordered a ban on the import of new models of foreign-produced consumer wireless routers after an interagency panel determined they threaten national security. Nintendo Co. is cutting back the production of Switch 2 after demand for the $450 gaming console trailed the company’s expectations during the year-end holiday season, particularly in the US. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.1% as of 7:52 a.m. London time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 2% The MSCI Emerging Markets Index rose 1.9% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1604 The Japanese yen was little changed at 158.52 per dollar The offshore yuan was little changed at 6.8871 per dollar The British pound was little changed at $1.3429 Cryptocurrencies

Bitcoin rose 0.1% to $71,000.2 Ether fell 0.2% to $2,158.26 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.36% Germany’s 10-year yield was little changed at 3.00% Britain’s 10-year yield declined seven basis points to 4.92% Commodities

Brent crude rose 1.7% to $101.66 a barrel Spot gold rose 0.4% to $4,424.29 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Momoka Yokoyama, Abhishek Vishnoi, Ruth Carson and Winnie Hsu.

©2026 Bloomberg L.P.