Iran peace talks hope to cool down, US stock futures decline, oil prices surge

Investing.com - U.S. stock index futures declined on Thursday, while oil prices surged significantly. Despite reports of potential peace negotiations between the U.S. and Iran, fighting in the Middle East continues.

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As of 07:36 AM Eastern Time (19:36 Beijing Time), Dow futures fell 351 points, down 0.8%; S&P 500 futures dropped 53 points, down 0.8%; Nasdaq 100 futures declined 230 points, down 0.9%.

Major Wall Street indices rose the previous trading day, driven by hopes that the U.S. and Iran might be willing to negotiate to end nearly a month of conflict. Media reports suggest Tehran has privately expressed willingness to dialogue with Washington, and U.S. Vice President JD Vance is reportedly preparing to travel to Pakistan for negotiations as early as this weekend.

Meanwhile, The Wall Street Journal reports that during ongoing communications, the U.S. and Israel may temporarily halt efforts to assassinate Iran’s foreign minister or parliamentary speaker.

However, as has been the case for most of this conflict, information from all sides remains confusing. The parties seem far apart on conditions for stopping hostilities, and the Pentagon continues to deploy more ground troops to the Middle East.

President Donald Trump said Iran’s negotiating team is “very different and ‘strange’,” adding that Tehran is “pleading” with the U.S. to reach an agreement to end the nearly month-long Middle East conflict.

In a social media post Thursday morning, Trump urged Iran to work toward a deal with Washington, reaffirming recent White House statements that Iran’s military capabilities have been “destroyed” through joint U.S.-Israel efforts.

“They’d better take it seriously soon, or it’ll be too late, because once that happens, there’s no turning back, and it won’t look good!” Trump wrote.

Oil prices hover above $100

As traders try to interpret a flood of news from the Middle East, oil prices again hovered above the $100 per barrel mark.

Global benchmark Brent crude futures for May delivery rose 5.0%, to $107.37 per barrel. U.S. WTI crude futures also increased 4.9%, to $94.73 per barrel.

Markets worry that an energy shock could reignite inflation pressures worldwide, prompting central banks to consider rate hikes. The Organization for Economic Cooperation and Development (OECD) warned that if energy prices continue to surge due to ongoing conflict, it could accelerate inflation and hinder economic growth.

Against this backdrop, the dollar continued to strengthen, solidifying its status as a safe-haven asset during crises. Meanwhile, gold declined, and global government bond yields rose.

In individual stocks, U.S. mining shares fell in pre-market trading, along with travel stocks like United Airlines and Delta Air Lines. Cruise operator Carnival Cruise also declined, as analysts previously pointed out the company might face risks from rising fuel prices.

Reports indicate Iran is reviewing a 15-point peace proposal from the U.S., but the White House warned that if Iran does not reach an agreement, there will be more airstrikes against the country. White House Press Secretary Karine Jean-Pierre stated that President Donald Trump “won’t bluff, and is ready to unleash hell,” but The Wall Street Journal reports Trump has told aides he hopes to end the war quickly.

Analysts at Vital Knowledge emphasize that the Trump administration has announced the official dates for the president’s upcoming visit to China as May 14-15, suggesting the U.S. expects the conflict to be fully resolved before then.

Most importantly, amid a wave of reports and rumors, the Strait of Hormuz remains effectively closed. This vital waterway, accounting for about one-fifth of global oil and natural gas flows, has been nearly shut down for weeks due to threats of Iranian attacks. Oil prices have pulled back slightly from earlier this month’s near $120 per barrel spike but remain well above pre-war levels from late February.

Israeli Defense Minister Yoav Gallant announced that Israeli forces killed Iranian Revolutionary Guard Navy Commander Ali Reza Tangi during a nighttime airstrike. Gallant claimed Tangi was “directly responsible” for laying mines that caused the blockade of the Strait of Hormuz.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.