Wall Street opened higher on Monday after President Trump said he would order the military to postpone strikes against Iranian power plants and energy infrastructure following productive conversations with Tehran.

Dow Jones Industrial Average, Nasdaq 100, and S&P 500 are up more than 1.75% in the initial hours of the Monday trade. Dow is up nearly 1,000 points while S&P 500 gained 1.8%, with Nasdaq Composite clocking 2%.

Trump wrote on his Truth Social network that the U.S. and Iran had engaged in “VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST” over the past two days.

Shortly after Trump announced on his Truth Social site, Iranian state television put up a graphic that read: “U.S. president backs down following Iran’s firm warning,” reported Reuters.

There are also reports that Iran has denied any such talks. Iran’s Fars News Agency disputed Trump’s statement, citing a source who said there had been no direct communication with the United States, nor via intermediaries, reports Reuters.

On Saturday night, Trump stated on his Truth Social network that if Iran does not “fully open” the Strait of Hormuz within 48 hours, the US will “hit and obliterate” Iranian power plants. In return, Iran stated that it will target US infrastructure.

Trump’s post has sparked optimism among investors that the Middle East conflict, which had increased oil prices and heightened recession fears, may be resolving.

Crude prices dropped after Trump’s post, with West Texas Intermediate futures falling more than 5% to around $91 a barrel. International benchmark Brent fell more than 7% to $103 a barrel.

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The big fear and uncertainty around the Iran conflict appears to have eased, at least for now. Oil prices, which had the potential to push inflation higher, have come down. This reduces the pressure on central banks to keep interest rates elevated for longer, a concern that had been weighing heavily on markets.

Investors trimmed bets on interest-rate hikes ⁠from the U.S. Federal Reserve after ⁠Trump’s comments, and they now stand at 20% in December, compared with more than 50% before, according to CME Group’s FedWatch Tool. 10-year yield is looking to trend lower with gold and silver getting some support from the news.