04:47 PM EDT, 03/23/2026 (MT Newswires) -- US equities rallied Monday after three straight sessions of losses, while oil prices slid as President Donald Trump delayed military strikes on Iran's energy infrastructure.

The Dow Jones Industrial Average and the Nasdaq Composite rose 1.4% each to close at 46,208.5 and 21,946.8, respectively. The S&P 500 advanced 1.2% to 6,581. All sectors ended in the green, led by a 2.5% jump in consumer discretionary.

West Texas Intermediate crude was last down 9.7% at $88.73 per barrel, while Brent slid 9.4% to $96.45.

In a social media post Monday, Trump said the US will not attack Iran's energy infrastructure for five days amid ongoing talks between the two countries. Trump had threatened to "hit and obliterate" Iran's power plants if Tehran didn't fully open the crucial Strait of Hormuz.

"A potential de-escalation in the Middle East adds a new layer to the outlook," Saxo Bank said in a report Monday. "The sharp rebound in equities on easing headlines highlights how sensitive markets remain to oil-driven inflation expectations; however, conflicting signals suggest any relief may remain headline-driven rather than durable."

Iran's Foreign Ministry denied that Tehran was in talks with Washington, The Wall Street Journal reported, citing Iranian state media.

The US-Israel war with Iran, which started at the end of last month, has impacted several countries in the Middle East and resulted in the closure of the Strait of Hormuz.

Monday's relief rally saw notable gains in travel-related stocks. Norwegian Cruise Line ( NCLH ) shares jumped 6.2%, while Carnival (CCL) rose 5.5%.

United Airlines (UAL) climbed 4.5%, while JetBlue ( JBLU ) gained 4.2%. Delta Airlines (DAL), American Airlines ( AAL ) , and Southwest Airlines ( LUV ) also advanced.

The Middle East conflict could prompt airlines to scale back their flight schedule, a move that would hit demand for aircraft parts and the need for repair and maintenance, Truist Securities said in a client note on Monday.

United Airlines recently announced a 5% reduction in planned capacity in the face of elevated oil prices, with plans to restore the full schedule this fall.

Meanwhile, the global sports industry's liquidity could take a hit from event cancelations in the Middle East should the Iran war drag on, Morningstar DBRS said.

On the monetary policy side, Chicago Federal Reserve President Austan Goolsbee said he's "fairly optimistic" that interest rates could go down by the end of this year, CNBC reported.

"But I wanted to see proof that we're back on an inflation headed to 2%," Goolsbee reportedly said. "This [war] definitely throws a wrench into the plans. We do need to see progress."

US Treasury yields were lower, with the 10-year yield down 3.8 basis points at 4.35% and the two-year rate losing 6.3 basis points to 3.85%.

In company news, activist investor Elliott Investment Management has amassed a multibillion-dollar stake in Synopsys ( SNPS ) and intends to engage with the chip-design software maker to push the business to make more money from its software and services, news outlets reported Sunday, citing unnamed sources. Synopsys ( SNPS ) shares rose 2.9%.

Cencora ( COR ) said it will acquire EyeSouth Partners' retina business for $1.1 billion as the drug distributor seeks to expand its network of retina specialists. Cencora ( COR ) shares fell 1.9%.

Gold was last down 3.8% at $4,401.30 per troy ounce, while silver lost 0.7% to $69.19 per ounce.