Overview
- Wall Street extended gains Tuesday as the S&P 500 rose 1.2% to within 0.2% of a record and the Nasdaq climbed 2%, while Brent settled under $95 and U.S. crude traded in the mid-$90s.
- Reports Tuesday that U.S. and Iranian delegations could return to Islamabad, paired with President Trump saying Tehran “called” and wants a deal, lifted expectations for de‑escalation.
- Oil’s slide followed a sharp jump after Monday’s U.S. naval blockade of Iranian ports at the Strait of Hormuz, which began after weekend talks in Pakistan collapsed over a nuclear pledge.
- Global equities advanced as energy pressures eased, with Europe and Asia higher and Pakistan’s KSE‑100 up about 3%, while tech and travel stocks led and energy shares lagged in the U.S.
- Risks remain as the blockade endures and the IMF cut its 2026 global growth outlook to 3.1%, and analysts warn markets may be assuming a quick resolution even though the strait carries about one‑fifth of the world’s oil.