Oil near $100 as US stocks steady on Iran talks

Oil near $100 US stocks Iran talks reflects a fragile balance in global markets, as investors weigh geopolitical risks against cautious optimism over diplomacy.

Oil prices hovered just below $100 per barrel on Monday after ceasefire talks between the U.S. and Iran failed to produce a breakthrough.

Despite that uncertainty, U.S. stocks held relatively steady, signaling that investors still expect a possible resolution to the conflict.

Markets remain resilient despite tensions

The S&P 500 rose 0.5% in afternoon trading, recovering from earlier losses. The Dow Jones Industrial Average gained modestly, while the Nasdaq Composite climbed 0.7%.

The relatively muted reaction contrasts with the sharp swings seen earlier in the conflict, suggesting that markets are adapting to ongoing uncertainty.

Still, energy markets show greater concern. Crude oil prices rose more than 4% at one point before easing slightly later in the session.

Strait of Hormuz remains a key risk

Tensions escalated after Donald Trump announced a blockade of the Strait of Hormuz, a move aimed at limiting Iran’s ability to export oil.

The narrow waterway is critical to global energy supply, carrying a significant share of the world’s oil shipments. Any disruption can quickly push prices higher.

Iran responded with threats against ports across the Persian Gulf and Gulf of Oman, raising fears of broader instability in the region.

Oil prices reflect uncertainty, not panic

The price of Brent crude — the global benchmark — climbed to around $99 per barrel. That level remains well above the roughly $70 seen before the war began, but below recent peaks near $119.

Analysts say markets are reacting cautiously.

Investors are encouraged that negotiations continue, even if progress remains limited. At the same time, the potential impact of a blockade depends heavily on its scope and enforcement.

Earnings season helps support stocks

Corporate earnings are providing additional support for equities.

Major companies have started reporting quarterly results, and stronger-than-expected profits could offset geopolitical concerns.

Goldman Sachs reported $5.63 billion in profit, beating expectations, though its stock declined as analysts flagged weaker trading revenue.

Technology stocks also helped lift the market. Oracle jumped more than 11%, while several software firms rebounded from earlier losses tied to concerns about artificial intelligence competition.

Inflation and interest rates remain in focus

Higher oil prices continue to fuel concerns about inflation, which has already pushed bond yields higher.

The yield on the 10-year Treasury held near 4.31%, reflecting expectations that the Federal Reserve may delay interest rate cuts.

Rising yields have also pressured sectors like housing, where mortgage rates have increased alongside energy costs.