Stocks Rebound as Iran Contacts US; S&P 500 Futures Rise 0.2%, Oil Pulls Back

[kim]

Stocks edged higher as investors reacted to a report suggesting Iran may have made indirect contact with the US, a development that could potentially open a path toward negotiations and ease fears that the Middle East conflict will escalate further. Futures tied to the S&P 500 (SPY) rose about 0.2%, while Brent crude retreated from an intraday high to trade below $83 a barrel. The dollar halted a two-day rally and Bitcoin (BTC-USD) climbed to around $71,000, moves that may indicate a partial return of risk appetite after several sessions of sharp volatility.

The shift in sentiment followed a New York Times report that operatives from Iran's Ministry of Intelligence used backchannels to contact the Central Intelligence Agency a day after US-Israeli attacks began. The outreach raised speculation that diplomatic channels could eventually emerge, though the report noted that officials remain skeptical that either Iran or the administration of President Donald Trump is currently prepared for a clear off-ramp from the conflict.

Markets have been highly reactive to geopolitical developments since the US-Israeli attacks on Iran disrupted energy infrastructure and raised concerns about supply routes across the region. Traders continue to focus closely on crude flows through the Strait of Hormuz, particularly as President Donald Trump considers plans to insure and escort tankers through the waterway. Analysts suggest volatility could persist while uncertainty around oil supply remains elevated, especially given that major Asian economies such as China, South Korea and Japan rely heavily on Middle East energy flows.
source: https://www.tradingview.com/news/gurufocus:4c8c54925094b:0-stocks-rebound-as-iran-contacts-us-s-p-500-futures-rise-0-2-oil-pulls-back/