Market-moving news for Sunday, October 25, 2026

What happened

U.S. stock futures opened Sunday evening higher, reversing some of Friday's sharp selloff, while crude oil futures fell more than 1%. Just after 6 p.m. ET Sunday, S&P 500 futures were up 0.4%, Nasdaq-100 futures up 0.6%, and Dow futures up 0.3% (about 165 points), according to Barron's. Investor's Business Daily later Sunday night reported futures holding modest gains (Dow and S&P 500 up 0.1%, Nasdaq edging higher) with crude oil futures down more than 1%. The rebound follows President Trump's Sunday decision to shelve a planned strike on Iran and point to talks beginning Monday, easing the immediate war premium that had driven Brent above $116.

What happened

President Trump has shelved the planned weekend strike on Iran and said U.S.-Iran talks will begin Monday, walking back Saturday's warning that the U.S. could strike as soon as Sunday. Asked by reporters whether the U.S. would attack Iran on Sunday, Trump said there would be no strike that day, while keeping future military options open and framing the choice as between 'finishing it off' and making a deal. The shift followed intensive weekend diplomacy: Qatari officials engaged Iran, the U.S. and Oman, reportedly telling Trump on Saturday that Tehran had accepted a proposal regarding the Strait of Hormuz, and Saudi Crown Prince Mohammed bin Salman called Trump to urge against military action. No strikes were recorded overnight into Sunday, though Iranian military leaders rejected Trump's characterization of progress and a Tehran-linked source told Fars News Agency no formal accord on the strait had been reached.

What happened

Iran's army said on Sunday, October 25, that its air defence systems shot down a US Low-Cost Uncrewed Combat Attack System (LUCAS) drone over the southern port city of Bandar Abbas, near the Strait of Hormuz, according to the semi-official Tasnim news agency as reported by Reuters. The announcement came hours after President Donald Trump said on Saturday that the United States could launch fresh strikes against Iran as soon as Sunday, while also leaving open a negotiated deal. Iran's army said the drone was operating over southern Iran under its integrated air defence network; LUCAS is a one-way attack drone modelled on Iran's Shahed-136 design, reportedly costing about $35,000 per unit. As of mid-morning Sunday US time, no new US strike had been announced, and diplomatic efforts involving Pakistan and Qatar were reported to be struggling to produce a breakthrough.

What happened

President Trump said Saturday that the United States could launch a military strike against Iran as soon as Sunday — or instead reach what he called a 'big, beautiful' deal with Tehran. Asked by reporters how close he was to ordering an attack, he said: 'We're thinking about doing it, and maybe tomorrow.' He added that Iran wants a deal but questioned whether Tehran would hold one: 'they want to make a deal, but the problem is, will they hold the deal?' Iran pushed back hard the same day: armed forces chief of staff Ali Abdollahi said U.S. military ships would never be allowed into the Persian Gulf 'under any circumstances and at any time,' and a Revolutionary Guard spokesman called American threats 'largely for media consumption' while warning Iran's response to any strike would be 'several times greater.'