Stocks Rise and Oil Falls as Ceasefire Hopes Drive Volatility – US Market Wrap

US stocks and bonds advanced while oil prices declined, as markets swung on shifting expectations around potential ceasefire talks between the US and Iran.

The S&P 500 posted its second gain of the week as optimism around diplomatic efforts gained traction, outweighing reports that Iran rejected a truce proposal and continued military operations. Brent crude settled near $102 a barrel. Treasuries recovered some of their recent losses, and gold moved higher.

Efforts to bring an end to the conflict — now approaching its fourth week — have intensified, though uncertainty remains over how negotiations would be structured and whether a deal is achievable. Recent discussions between the US and Iran have been described as constructive, with proposals reportedly including limits on Iran’s nuclear and missile capabilities.

However, Iran has shown limited willingness to engage under current terms, signaling resistance to indirect talks and outlining its own conditions for any ceasefire. These include guarantees against future attacks, compensation for damages, and recognition of its authority over the Strait of Hormuz.

The conflicting signals have kept markets volatile, with investors reacting to each development as they assess the likelihood and potential impact of a resolution.