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Markets Rally as Oil Falls on Hopes of U.S.-Iran Talks Restart

The rebound reflects wagers that revived U.S.-Iran talks in Pakistan will cool oil prices, easing inflation fears.

Overview

  • Following Tuesday's surge that left the S&P 500 within 0.2% of a record and the Nasdaq up for a tenth straight day, Asian and Indian benchmarks rose to multi-week highs on Wednesday.
  • President Trump said talks with Iran could resume in Pakistan within two days after weekend negotiations collapsed, even as a U.S. naval blockade of Iranian ports stays in place.
  • Oil prices fell below $100 a barrel, with Brent near $94–95, as hopes for new diplomacy eased fears of a supply squeeze through the Strait of Hormuz, the route for about one-fifth of global oil shipments.
  • Bank and asset‑manager earnings, including stronger results from BlackRock, Citigroup, Morgan Stanley and Bank of America, helped bolster confidence in corporate profits.
  • The outlook remains fragile, with the IMF cutting its global growth forecast and warning that a longer conflict could push inflation higher and dent growth if talks stall.