Quick overview

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U.S. stocks ended Thursday in negative territory as investors weighed uncertainty surrounding potential peace negotiations between Washington and Tehran, while oil prices fluctuated throughout the session.

Markets Lose Momentum Amid Iran Uncertainty

Wall Street lost steam after crude oil pared earlier losses following comments from Iran indicating it is still reviewing a new U.S. proposal aimed at ending the conflict between the two countries.

The rebound in oil prices also pressured equities by weighing on broader market sentiment and limiting gains outside the energy sector.

The Dow Jones Industrial Average fell 0.63% to 49,596.60 points, while the S&P 500 declined 0.40% to 7,335.66. The Nasdaq Composite slipped 0.13% to 25,806.20.

Hopes for a U.S.-Iran Agreement Persist

According to reports, Washington and Tehran are working through mediators on a one-page framework intended to restart negotiations toward a lasting peace agreement. Talks are expected to begin next week in Pakistan, according to the The Wall Street Journal.

The report added that the month-long process would seek to address disputes over Iran’s nuclear ambitions and the potential easing of sanctions, although major disagreements remain over uranium enrichment and inspection mechanisms.

President Donald Trump suggested on Wednesday that the U.S. had already “won” the war and described recent discussions with Tehran as “very good.”

Iran, however, delivered mixed signals. State media reported that Tehran is still reviewing the American proposal and has not yet reached a conclusion, citing Foreign Ministry spokesperson Esmaeil Baqaei.

Oil Rebounds After Sharp Declines

Crude prices initially dropped below the $100-per-barrel threshold as traders assessed the implications of the ongoing closure of the Strait of Hormuz, which could reportedly remain disrupted for several more weeks.

However, losses later narrowed. July Brent crude futures fell 0.9% to $100.38 per barrel, while June West Texas Intermediate (WTI) crude slipped 0.5% to $94.59.

CNN reported that Iran introduced a new protocol for tankers crossing the Strait of Hormuz, requiring vessels to submit a “Vessel Information Declaration” form. According to the report, ships that fail to comply risk being targeted.

Meanwhile, the Wall Street Journal cited senior Iranian official Mohsen Rezaei as saying Tehran would not allow the U.S. to reopen the strait under an “unrealistic plan” and then withdraw without paying reparations for damages caused during the conflict.

Energy prices have surged since the start of the crisis, largely because the Strait of Hormuz handles roughly one-fifth of global oil shipments. Despite the recent pullback, oil remains well above pre-war levels.

Earnings Season Continues to Support Equities

Despite Thursday’s decline, a broadly positive earnings season has continued to provide support for equities and helped major indexes remain near record highs.

The artificial intelligence sector remained a focal point for investors, supported by solid results from major technology companies including

• Alphabet (+0.09%)
• Microsoft (+1%)
• Meta (+0.6%)

Among semiconductor firms, AMD fell 3%, while Arm Holdings dropped 10% despite continued investor interest in AI-related infrastructure.