Nasdaq Opens 1.48% Higher While Dow Surges 1.56% After Trump Postpones Strikes on Iranian Power Plants

The main U.S. indexes opened higher on ​Monday after President Donald Trump said he would order the military to postpone strikes against Iranian power ‌plants and energy infrastructure following "productive conversations" with Tehran.

Iran's Fars News Agency, however, disputed Trump's statement, citing a source who said there had been no direct communication with the United States, nor via intermediaries. Israel's military said it was conducting strikes on Iran.

Still, global markets staged a sharp recovery after ​Trump's comments, with precious metals turning positive, while oil prices fell, signaling improving risk appetite.

Markets had been ​trading lower after Iran's Revolutionary Guards said Tehran would attack Israel's power plants and plants supplying U.S. bases ⁠in the Gulf if Trump carried out his threat to "obliterate" Iran's power network.

"It's exactly what the market needed to ​hear to sort of reprice worst case expectations. This means there is potential for the Strait of Hormuz to reopen; it's ​being priced in almost immediately," said Fiona Cincotta, senior market analyst at City Index.

The recovery depended on if "we get more supportive comments, particularly from Iran" that progress was being made, she said.