Stocks Reverse as Oil Surge Undermines Record Run on Iran Talks Doubts – US Market Wrap
US equities turned lower as rising oil prices renewed concern that diplomatic talks between the US and Iran will not happen before the current truce expires, with both sides still divided on major issues.
Stocks gave up an earlier rally that had briefly put the S&P 500 on track for a fresh record. Sentiment weakened after reports said Iranian officials would not attend the planned negotiations and Vice President JD Vance delayed a scheduled trip to Pakistan. Brent crude climbed above $100 a barrel, while Treasury yields and the dollar moved higher.
According to reports, Iran told the US through Pakistani mediation that it would not take part in talks expected in Islamabad. Separate reporting said Vance had canceled his trip, after previously being expected to travel from Washington for the negotiations.
Trump said Tehran had little choice but to send a delegation and warned the US was prepared to resume bombing if no breakthrough is reached. Iran, meanwhile, rejected the idea of negotiating under military pressure.
The standoff continues to threaten global energy supplies, with traffic through the Strait of Hormuz still close to a standstill. Broader tensions also remain unresolved, including Iran’s nuclear program and Israel’s military campaign in Lebanon.
