Equities rise despite near-$100 oil as traders focus on constructive Iran talks.
Wall Street stocks closed higher on Thursday (April 17), extending record levels as investors responded positively to remarks from US President Donald Trump regarding negotiations with Iran, while largely overlooking a rise in crude oil prices.
After fluctuating between gains and losses throughout much of the session, all three major US indices finished in positive territory.
This resulted in fresh record closes for both the S&P 500 and Nasdaq, which each rose about 0.4 percent.
While there is still “nothing concrete” on Iran, commentary from US President Donald Trump and other officials is increasingly being viewed as constructive, said Briefing.com analyst Patrick O’Hare.
“By all accounts, the market expects a good outcome here,” he added.
Analysts have noted that some of the recent strength in equities reflects investors positioning ahead of a potential deal that could further lift markets if finalized.
However, energy prices have surged since the US–Israel escalation on February 28, after Iran restricted most tanker movement through the Strait of Hormuz. Roughly one-fifth of global crude oil and liquefied natural gas flows normally pass through the strategic waterway.
US President Donald Trump said the United States and Iran were “very close” to a peace agreement, raising expectations that normal shipping activity in the strait could resume.
“We had to make sure that Iran never gets a nuclear weapon,” he said. “They’ve totally agreed to that. They’ve agreed to almost everything, so maybe if they can get to the table, there’s a difference.”
Earlier on Thursday, US Defense Secretary Pete Hegseth struck a firm tone on the escalating situation.
“If Iran chooses poorly, then they will face a blockade and strikes on infrastructure, power, and energy,” Hegseth said at a Pentagon news conference.
Oil markets reacted with volatility, with Brent crude futures rising nearly 5 percent to above $99 a barrel.
Stephen Schork of the Schork Group said the fluctuations reflected mixed signals from both Washington and Tehran, which have contributed to uncertainty across energy markets.
European stocks closed modestly higher, with London and Frankfurt gaining just under 0.5 percent, while Paris edged slightly lower on the day.
Earlier in the session, the Tokyo stock market hit a record high, tracking all-time peaks in major US indices on Wednesday as investors welcomed strong earnings from American blue-chip companies, despite rising oil prices and inflationary pressures.
“Global stock markets have staged one of the fastest recoveries in recent memory,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
He added that “oil prices remain elevated as investors look toward a possible extension of the ceasefire between the US and Iran, while weighing the chances of a broader agreement that could ultimately reopen the Strait of Hormuz.”
Key figures around 2020 GMT
New York – Dow Jones: up 0.2% at 48,578.72 (close)
New York – S&P 500: up 0.3% at 7,041.28 (close)
New York – Nasdaq: up 0.4% at 24,102.70 (close)
London – FTSE 100: up 0.3% at 10,589.99 (close)
Paris – CAC 40: down 0.1% at 8,262.70 (close)
Frankfurt – DAX: up 0.4% at 24,154.47 (close)
Tokyo – Nikkei 225: up 2.4% at 59,518.34 (close)
Hong Kong – Hang Seng Index: up 1.7% at 26,394.26 (close)
Shanghai – Composite: up 0.7% at 4,055.55 (close)
Brent North Sea Crude: up 4.7% at $99.39 a barrel
West Texas Intermediate: up 3.7% at $94.69 a barrel
Euro/dollar: down at $1.1784 from $1.1799 on Wednesday
Pound/dollar: down at $1.3529 from $1.3561
Dollar/yen: up at 159.14 yen from 159.00 yen
Euro/pound: up at 87.09 pence from 87.00 pence
