Oil Swings as Iran Peace Draft Emerges

Yahoo Finance UK reported Tuesday that an Iran peace deal draft circulating through state media sent Wall Street to fresh highs, even as overnight US military action against Iranian targets kept crude oil volatile and European markets largely in the red.

Wall Street Shrugs Off Strikes to Set Records

Both the S&P 500 and the Nasdaq closed at all-time highs Tuesday. The S&P 500 finished up 0.6% at 7,519.12 while the Nasdaq gained 1.2% to close at 26,656.18. The Dow Jones edged 0.2% lower at 50,461.68. Analysts at Interactive Brokers noted that progress in US-Iran negotiations was overriding the negative impact of renewed military tensions. Optimism around a sustained drop in crude prices and bond yields was seen as a direct positive for business fundamentals.

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Micron Surges Past $1 Trillion as AI Demand Fuels Analyst Upgrade

Chip maker Micron was the standout single-stock mover of the session. Shares jumped roughly 20%, pushing its market valuation beyond $1 Trillion for the first time. A bullish note from UBS analysts, focused on Micron’s positioning within the artificial intelligence supply chain, drove the move. The stock’s surge made it the latest entrant to the elite club of trillion-dollar technology companies.

Background: A Fragile Ceasefire Under Pressure

Before Tuesday’s session, markets had already begun pricing in a potential deal. Brent crude futures had slipped below $100 a barrel earlier in the week on reports that an agreement could be finalised within days. Those gains were then reversed after US forces struck missile sites in southern Iran and targeted vessels allegedly laying mines. Iranian media reported explosions near the port city of Bandar Abbas, close to the Strait of Hormuz. Iran’s Revolutionary Guards claimed to have downed a US drone and fired on an F-35. Tehran’s foreign ministry accused US forces of violating ceasefire terms. Secretary of State Marco Rubio maintained Tuesday that a deal remained achievable, though he held firm on the question of Hormuz shipping access.

Europe and Asia Trade Mixed as BP Drops on Governance Shock

European equities closed lower in Frankfurt and Paris, each off around 1%, while London edged fractionally higher. British energy major BP was among the session’s worst performers, falling more than 4% after the surprise removal of chairman Albert Manifold over governance concerns. In Asia, Seoul’s benchmark index crossed 8,000 points for the first time. Shares in Ferrari fell 6% after investors reacted coolly to the Italian marque’s debut electric vehicle unveiling.

Brent crude settled up roughly 3.6% at $99.58 a barrel after earlier touching above $100.

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