Wall Street stocks posted strong weekly gains while oil prices tumbled sharply as a fragile truce between the United States and Iran sparked cautious optimism among investors. Ceasefire negotiations are scheduled to begin in Islamabad on Saturday, easing fears of escalating Middle East tensions that had previously rattled global markets.
For the week, all three major U.S. indices—the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite—advanced by more than 3 percent. Meanwhile, oil prices retreated significantly, with a weekly decline of approximately 13 percent as hopes grew for a diplomatic resolution.
“Markets are trading on a cautious tone ahead of the US-Iran ceasefire talks,” noted Elias Haddad of Brown Brothers Harriman. “For financial markets, the key issue is whether peak shipping security fear is now behind us.”
Friday’s trading session saw mixed results, with the Dow Jones shedding 0.6 percent, the Nasdaq gaining 0.4 percent, and the S&P 500 remaining nearly flat with a slight 0.1 percent dip. The upcoming talks in Islamabad are expected to focus on Iran’s nuclear enrichment activities and the critical flow of oil through the Strait of Hormuz, a vital maritime chokepoint.
Since the ceasefire took effect, U.S. President Donald Trump has expressed dissatisfaction with Iran’s management of the strait, which was anticipated to reopen. Analysts highlight that the resumption of ship traffic through this corridor remains a pivotal concern for energy markets.
“The key issue for the oil market is whether ship traffic through the Strait of Hormuz will resume,” said Carsten Fritsch of Commerzbank. “So far, there are no signs of this happening.”
In economic data released Friday, U.S. inflation surged to 3.3 percent in March, driven largely by higher energy prices stemming from the recent conflict. White House spokesperson Kush Desai responded by asserting that the U.S. economy “remains on a solid trajectory.”
European markets showed modest movements, with London and Frankfurt closing virtually unchanged and Paris adding 0.2 percent, reflecting a global wait-and-see approach as diplomatic efforts unfold.