U.S. stock futures surged after President Trump postponed military strikes on Iran's energy infrastructure, providing relief to global markets rattled by Middle East tensions. The S&P 500 and Nasdaq futures jumped over 1% following Trump's announcement that he would delay potential attacks on Iran's oil facilities for five days after 'productive conversations' with Tehran.

Oil prices plummeted in response, with Brent crude falling below $100 a barrel after briefly topping $114. The dramatic reversal came after Trump had given Iran just 48 hours to open the Strait of Hormuz or face U.S. military action. Iran rejected the ultimatum and threatened to close the vital waterway entirely if attacked.

Investors are closely monitoring the conflict's economic impact, particularly on energy markets. Economists warn that sustained high oil prices could undermine the benefits of Trump's recent tax cuts. The University of Michigan consumer sentiment report due Friday will offer crucial insights into how rising fuel costs are affecting American households, especially in the South and Southwest where prices have spiked.