Stocks Rise, Oil Falls on Iran Deal Optimism – US Market Wrap

Hopes for a diplomatic breakthrough to end the war in Iran extended a decline in oil prices while lifting stocks, with Wall Street sentiment also supported by SpaceX’s strong trading debut.

The S&P 500 added to this week’s advance, with Elon Musk’s space company rising 19% after a record-setting IPO. US crude settled below $85 as the US said an interim peace deal to reopen the Strait of Hormuz and curb Iran’s nuclear ambitions appears increasingly likely and could be signed within days.

A senior administration official estimated an 80% to 85% probability that an agreement will be reached soon. Trump said he believes a deal could be signed over the weekend or Monday.

Iran’s Foreign Minister Araghchi said the Islamabad Memorandum of Understanding has “never been closer.” Pakistan’s Prime Minister Sharif noted a “final, agreed upon text” has been reached, with efforts underway to finalize next steps.

Equities briefly dipped after Trump complained about Iran leaking details of the deal.

Fed officials are widely expected to keep rates unchanged at the June 16-17 meeting, the first under new Chair Kevin Warsh.