07:37 AM EDT, 03/31/2026 (MT Newswires) -- US equity futures were tracking in the green on Tuesday as traders assess reports that President Donald Trump is willing to end the war with Iran without reopening the key Strait of Hormuz.

The S&P 500 and the Dow Jones Industrial Average rose 0.6% each in premarket activity, while the Nasdaq added 0.5%. The S&P 500 and the Nasdaq fell for a third straight day in the previous trading session, while the Dow closed higher.

US markets will be closed on Friday for the Good Friday holiday.

Trump has told officials in his administration that he is willing to end the US military campaign against Iran even if the Strait of Hormuz, the world's most important chokepoint for crude flows, remains largely closed, The Wall Street Journal reported late Monday. Trump and his aides have recently assessed that forcibly reopening the waterway will extend the conflict beyond his timeline of four to six weeks, according to The Journal.

Earlier on Monday, Trump said in a social media post that the US is in discussions with a new Iranian regime, but will blow up Iran's power plants, oil wells and export hub Kharg Island if a deal is not reached and the Strait of Hormuz remains shut.

"While peace negotiations are perhaps underway, the Strait of Hormuz remains largely closed and investors worry that higher-for-longer fuel prices and supply chain disruptions for other commodities will begin to restrict global economic growth," James Ragan, director of investment management and research at D.A. Davidson, said in report e-mailed to MT Newswires on Monday.

West Texas Intermediate crude oil increased 2% to $104.92 a barrel before the opening bell, while Brent gained 2.3% to $115.24.

Federal Reserve Chair Jerome Powell on Monday said inflation expectations in the US seem to be "well anchored" beyond the short term amid the recent oil price shock.

"It's something we will eventually maybe face the question of what to do here," Powell said during a discussion at Harvard University. "We're not really facing it yet, because we don't know what the economic effects (of the Iran war) will be, but we'll certainly be mindful of that broader context when we make that decision."

The two-year Treasury yield was unchanged at 3.83% in premarket action, while the 10-year rate retreated 0.8 basis points to 4.33%.

Fed Vice Chair of Supervision Michelle Bowman and Governor Michael Barr are scheduled to speak later on Tuesday, along with Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeff Schmid.

Tuesday's economic calendar has the Job Openings and Labor Turnover Survey for February at 10 am ET. The Case-Shiller Home Price Index and the Federal Housing Finance Agency House Price Index, both for January, post at 9 am. The Chicago purchasing managers' index for March is out at 9:45 am, followed by the consumer confidence report for the same month at 10 am.

McCormick's ( MKC ) shares advanced 5.8% pre-bell after Unilever (UL) confirmed it's in advanced talks to combine its food business with the spices and seasonings producer in a potential deal with an upfront cash component of about $15.7 billion. Progress Software ( PRGS ) edged up 0.5% as the software firm lifted its full-year earnings outlook.

Sportswear giant Nike ( NKE ) is expected to release its latest financial results after the markets close. McCormick ( MKC ) , TD Synnex ( SNX ) and FactSet Research ( FDS ) post their earnings before the bell, among others.

Gold rose 0.4% to $4,542 per troy ounce, while bitcoin slipped 0.1% to $66,295.