As hopes for a US-Iran deal grow, stocks rise and oil falls – US Market Wrap

Hopes for a diplomatic solution to Iran’s war buoyed equities and bonds, while oil fell on speculation that a compromise would allow for the resumption of energy flows through the vital Strait of Hormuz.
In a tumultuous session, the S&P 500 extended this week’s gains. A decline in US crude oil prices pushed Treasury yields lower. Iran said a US proposal helped to bridge the gap between the warring sides, despite comments by the Islamic Republic’s Supreme Leader regarding maintaining the uranium stockpile and a dispute over tolls in the Strait of Hormuz, casting doubt on a breakthrough.
According to the Financial Times, Secretary of State Rubio observed “some good signs” of a possible settlement. He expects Pakistani mediators to visit Tehran, according to the news report. Meanwhile, Iranian President Pezeshkian stated that the nation “will never back down.”
Traders have been watching for signs of progress in talks that could lead to the reopening of the Strait of Hormuz. Since the crisis began, traffic via the waterway has decreased, forcing energy prices to skyrocket while shaking economies, businesses, and markets.
Iran is talking with Oman about how to establish a permanent toll system that will codify its control over maritime traffic through the energy chokepoint. Trump stated that the US wants the strait to be open and free of charges.