{"id":62084,"date":"2026-05-18T18:38:27","date_gmt":"2026-05-18T22:38:27","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-tumble-as-trump-signals-iran-de-escalation-nikkei-futures-surge\/62084\/"},"modified":"2026-05-18T18:38:27","modified_gmt":"2026-05-18T22:38:27","slug":"oil-prices-tumble-as-trump-signals-iran-de-escalation-nikkei-futures-surge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-tumble-as-trump-signals-iran-de-escalation-nikkei-futures-surge\/62084\/","title":{"rendered":"Oil Prices Tumble as Trump Signals Iran De-escalation; Nikkei Futures Surge"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>WTI Crude Oil futures dropped over 2%<\/strong> as President Trump announced a delay in a planned military strike on Iran, citing a &quot;strong likelihood&quot; of reaching a nuclear agreement.<\/li>\n<li><strong>Nikkei 225 futures surged to 61,595<\/strong>, trading at a significant premium over the cash close of 60,815, as geopolitical tensions eased.<\/li>\n<li><strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>) reaffirmed its 2026 financial guidance<\/strong>, projecting Q2 free cash flow between <strong>$4.0 billion and $4.5 billion<\/strong> while maintaining its capital return plans.<\/li>\n<li><strong>U.S. Treasury futures rose sharply<\/strong>, with 10-year notes gaining <strong>10 ticks<\/strong> and 30-year bonds rising <strong>13 ticks<\/strong> following the de-escalation in the Middle East.<\/li>\n<li><strong>A worker fatality at SpaceX\u2019s Starbase facility<\/strong> in Texas is under investigation by local officials and federal safety regulators following an on-the-job incident on Friday.<\/li>\n<\/ul>\n<p>Global energy markets saw a sharp correction on Monday after <strong>President Trump<\/strong> announced he would delay a scheduled military strike on <strong>Iran<\/strong>. The President expressed optimism regarding diplomatic efforts, stating there appears to be a &quot;strong likelihood&quot; that an agreement can be reached to prevent the nation from obtaining nuclear weapons. This pivot toward a potential peace deal significantly reduced the geopolitical risk premium that had been driving energy prices higher in recent sessions.<\/p>\n<p><strong>U.S. WTI Crude Oil<\/strong> futures reacted immediately to the news, with the most active <strong>July contract<\/strong> dropping <strong>$2.15, or 2.03%<\/strong>, to trade at <strong>$102.26 per barrel<\/strong>. The front-month contract also saw a decline, falling <strong>$1.54, or 1.42%<\/strong>, to open at <strong>$107.12 per barrel<\/strong>. <em>Market analysts noted that the sudden shift from military threats to negotiation talk caught many traders off guard, leading to a rapid unwinding of long positions in the oil complex.<\/em><\/p>\n<p>Equity and fixed-income markets showed a strong positive reaction to the easing tensions. <strong>Nikkei 225 futures<\/strong> traded at <strong>61,595<\/strong>, a substantial jump from the cash close of <strong>60,815<\/strong>, signaling a bullish open for Asian markets. In the U.S., <strong>10-year Treasury futures<\/strong> surged <strong>10 ticks<\/strong> and <strong>30-year futures<\/strong> rose <strong>13 ticks<\/strong>, as investors recalibrated their outlook on global stability and inflation risks associated with energy costs.<\/p>\n<p>In corporate news, <strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>)<\/strong> reiterated its full-year 2026 and multi-year financial guidance, providing a stabilizing signal to the telecommunications sector. The company expects improved year-over-year growth in wireless service revenue and consolidated adjusted EBITDA for the second quarter. Furthermore, <strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>)<\/strong> remains on track to deliver <strong>$4.0 billion to $4.5 billion<\/strong> in free cash flow for Q2, supporting its ongoing capital return strategy for shareholders.<\/p>\n<p>Tragedy struck <strong>SpaceX\u2019s<\/strong> rocket facility in Starbase, Texas, where local officials confirmed a worker passed away following an on-the-job incident last Friday. The <strong>Wall Street Journal<\/strong> reported that federal safety regulators have launched an investigation into the fatality, which comes as the company continues its rapid expansion of the Starship program. <strong>SpaceX<\/strong> has not yet issued a formal statement regarding the cause of the accident or its potential impact on upcoming launch schedules.<\/p>\n<p>On the domestic policy front, <strong>President Trump<\/strong> announced a major expansion of the <strong>TrumpRx<\/strong> discount drug pricing scheme. The program will now include over <strong>600 generic drugs<\/strong>, a seven-fold increase in the number of medications available through the platform. In separate remarks, the President addressed health and safety concerns, describing a recent shooting in <strong>San Diego<\/strong> as a &quot;very bad thing&quot; and expressing worry over an <strong>Ebola<\/strong> outbreak, though he noted it remains restricted to Africa for the time being.<\/p>\n<p>Finally, in the technology sector, <strong>Anthropic<\/strong> announced a new intelligence-sharing feature for its <strong>Mythos<\/strong> users. The update permits users to share cyber threat intelligence with others, aiming to foster a collaborative defense environment against emerging digital risks. <em>This move is seen as a strategic push by Anthropic to integrate its AI capabilities more deeply into the enterprise security ecosystem.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways WTI Crude Oil futures dropped over 2% as President Trump announced a delay in a planned military strike 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