S&P 500, Nasdaq Hit Record Highs as Oil Prices Surge from Stalled Iran Peace Talks
U.S. stock markets reached new record highs despite stalled Iran negotiations and elevated oil prices. Goldman Sachs raised its oil price forecasts significantly, expecting Brent crude to average $90 per barrel in Q4 2026, a major shift from earlier predictions.
Markets Reach Records Despite Middle East Tensions
The S&P 500 and Nasdaq Composite rose to new record highs on Monday, with the broad market index adding 0.12% and closing at a record level of 7,173.91, while the Nasdaq Composite gained 0.20% and notched a closing record of 24,887.10.
Oil Price Shock Persists
Goldman Sachs now expects oil prices to stay higher for longer, raising its Brent forecast to $90 a barrel by late 2026 from $80 previously, as disruptions in the Persian Gulf prove more persistent than earlier assumed, with delayed normalization in Gulf exports now expected only by end-June and slower production recovery.
Geopolitical Outlook
President Donald Trump on Saturday scrapped plans to send U.S. special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran. Iran has offered a new proposal to the U.S. for reopening the Strait of Hormuz and ending the war while suggesting that nuclear talks be deferred.