US Stocks Near Record High as Oil Declines on Iran Peace Talks
The S&P 500 surged to near its all-time high as oil prices fell on hopes of US-Iran negotiations. The stock market gains came as President Trump signaled diplomacy with Tehran, relieving energy market pressures.
Market Rally on Geopolitical Easing
The US stock market surged to the cusp of its all-time high amid conflicting signals about negotiations on ending the US-Israel war on Iran, with the S&P 500 climbing 1.5 percent on Monday, leaving the benchmark index just shy of its closing record of 7,620.90 set on June 2. The tech-focused Nasdaq Composite jumped 2.1 percent, closing 4.3 percent below its all-time peak of 27,093.90 also set on June 2, while the Dow Jones Industrial Average rose 1.3 percent to hit a record high of 53,178.41.
Oil Prices Stabilize
Brent crude, the primary international benchmark for oil prices, fell about 5 percent on Monday before climbing as markets opened in Asia on Tuesday, with Brent futures standing at $84.65 per barrel as of 07:05 GMT, up more than 1 percent from Monday's close. US President Donald Trump said on Monday that talks with Iran were under way and that he wanted to give Tehran "every last chance" to sign a deal before facing renewed strikes.
AI Demand Driving Asia Markets
South Korea's Kospi, which has been on a roller coaster in 2026 amid furious demand for memory chips used in artificial intelligence, was up 1.6 percent as of 07:00 GMT. Japan's benchmark Nikkei 225 edged up 0.3 percent, while Hong Kong's Hang Seng Index dipped 0.6 percent.
Energy Markets in Flux
The latest market moves came as Washington and Tehran offered conflicting accounts of the communications taking place between the sides. The prospect of diplomatic breakthroughs has reduced the geopolitical risk premium that had elevated oil prices due to Middle East tensions, signaling potential relief for energy-dependent sectors of the global economy.