Oil Dips as Iran Talks Stall, But Stocks Climb on AI Optimism

Yahoo Finance Singapore reported Tuesday that oil prices pulled back from Monday’s sharp gains as US-Iran negotiations showed no clear path to resolution, while equities advanced to record levels on a fresh wave of AI-driven optimism.

Oil Softens but Stays Well Below Recent Peaks

Brent crude fell roughly 0.3% to $94.70 a barrel, and West Texas Intermediate slipped about 0.6% to $91.64. Both benchmarks had surged Monday after reports emerged of stalled ceasefire discussions. Analyst David Morrison at Trade Nation noted that despite the turbulence, prices remained near the lower end of their recent trading band and well clear of the $100-a-barrel levels seen just weeks ago. The lack of a firm agreement to reopen the Strait of Hormuz kept physical supply concerns alive, but markets resisted a deeper selloff.

Trump Talks, But Israeli Strikes Resume

US President Donald Trump told reporters he had spoken with Israeli Prime Minister Benjamin Netanyahu and described a separate call with Hezbollah as productive. He insisted progress in the broader Mideast talks was rapid. Israeli airstrikes nonetheless resumed Tuesday, undercutting the optimism his comments had briefly generated. Susannah Streeter, chief investment strategist at Wealth Club, said there was no concrete advancement in the negotiations but that investors broadly expected a longer-term resolution to emerge.

Background: A Market Caught Between Geopolitics and AI

Oil’s role as a barometer of Middle East risk has been pronounced throughout the conflict’s escalation. Prices climbed sharply in recent weeks as concerns over Hormuz supply disruptions mounted, briefly touching $100 before retreating. Meanwhile, equities have increasingly looked past the geopolitical noise, buoyed instead by the AI investment cycle. As Saxo Markets analyst Neil Wilson put it, Iran headlines may grab the wheel, but the AI trade remains the engine driving stock markets.

Wall Street and Tech Extend Their Run

Both the Dow Jones Industrial Average and the S&P 500 notched fresh all-time highs Tuesday, up 0.3% and 0.2% respectively. Nvidia edged higher after a more than 6% jump on Monday tied to a new laptop chip announcement. Alphabet separately said it plans to raise up to $80B in equity to fund expanded AI infrastructure, with Warren Buffett‘s Berkshire Hathaway committing $10B to the effort. AI startup Anthropic also filed confidentially for an IPO that could value it at close to $1 Trillion. Friday’s US jobs report looms large, with the Federal Reserve watching closely for signals on whether to hold or raise its benchmark rate.

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