Wall Street inches higher while oil prices fall on optimism over talks of Iran ceasefire extension

Wall Street stocks edged higher on Friday, building on previous record highs, driven by optimism over a tentative deal to extend the ceasefire in the war with Iran. Futures for the S&P 500 and Dow Jones Industrial Average saw gains, while the Nasdaq remained flat. Dell Technologies experienced a significant surge of 33% after exceeding first-quarter sales and profit forecasts and securing a large Pentagon contract. Conversely, Gap's stock fell 15% despite meeting profit targets due to a reduced full-year sales outlook. Oil prices declined, with Brent crude falling to $91.44 a barrel and U.S. crude to $87.87, as the potential ceasefire extension eased market concerns. The tentative agreement, pending U.S. President Donald Trump's approval, aims to extend the ceasefire by 60 days and includes new talks on Iran's nuclear program.

Global markets rallied on Wednesday, with the US stock market nearing record highs and oil prices plunging, due to hopes of a potential US-Iran ceasefire deal. This optimism stems from reports suggesting a preliminary document has been obtained by Iran, outlining a framework for a deal that could reopen the Strait of Hormuz. Such a reopening would ease concerns over oil and gas supply, thereby reducing global economic uncertainty. Iran's state broadcaster reported that traffic through the strait could return to pre-war levels within 30 days, and the US would lift its naval blockade on Iranian ports. Despite the White House dismissing the report as a "complete fabrication," oil prices remained subdued, with US crude falling 5.5 percent and Brent crude decreasing to $92. The S&P 500 and Dow Jones Industrial Average saw gains, building on previous increases.

Global stock markets mostly rose on Wednesday, mirroring recent record highs on Wall Street. The gains were driven by strong performance in technology companies, particularly those involved in artificial intelligence and computer chip manufacturing, following a significant surge in Micron Technology's stock. Oil prices fell as a ceasefire between the U.S. and Iran appeared to hold, easing concerns about supply disruptions and inflation. This decrease in oil prices also led to a drop in Treasury yields, providing relief to the bond market. European markets generally followed the upward trend, while Asian markets showed a mixed performance. Companies benefiting from the AI boom and those with high fuel costs saw significant gains, while oil and gas industry stocks experienced declines.

Global oil prices surged to a four-year high, exceeding $122 a barrel on Thursday. This price increase is attributed to concerns that a potential escalation of conflict between the United States and Iran could disrupt Middle Eastern oil supplies. The market reacted to a report that US President Donald Trump was scheduled to receive a briefing on plans for military strikes against Iran, aimed at prompting negotiations on its nuclear program. Brent crude futures saw a significant rise, reaching their highest point since March 9, 2022, as traders anticipated potential supply disruptions. This development raises worries about the impact on global economic growth.

Crude oil prices reached a four-year high following a statement by US President Donald Trump suggesting a naval blockade of the Strait of Hormuz could persist for "months." Brent crude, the global benchmark, saw a significant surge of up to 7.3 percent, exceeding $126 a barrel. This price increase occurred after reports indicated President Trump met with oil executives to discuss extending the blockade. The news of the potential prolonged blockade directly impacted oil markets, causing a sharp rise in prices.