Wall Street hits record highs as hopes for Iran deal push oil prices lower

US stock markets climbed to new record highs despite ongoing tensions in the Middle East. The rally was driven by growing hopes for a possible agreement between the United States and Iran, combined with continued enthusiasm surrounding artificial intelligence.

The Dow Jones rose 1.2% to nearly 49,911 points, while the Nasdaq and S&P 500 also reached fresh highs. At the same time, oil prices dropped sharply, with Brent crude temporarily falling below $100 per barrel after declining more than 12%.

The move follows reports of progress in diplomatic talks between Washington and Tehran. According to mediators, a new memorandum aimed at de-escalation may be under discussion. US President Donald Trump recently spoke of “major progress” and even suggested a temporary suspension of US naval escort operations for commercial ships in the Strait of Hormuz.

Markets reacted immediately. Investors are increasingly betting that the risk of further escalation in the Middle East could decline, easing concerns over global energy supply disruptions.

Such a development would have major implications for the global economy. The Strait of Hormuz is one of the world’s most important oil shipping routes, meaning any stabilization directly affects energy prices, inflation and transportation costs.

At the same time, enthusiasm around artificial intelligence continues to fuel equity markets. Technology and semiconductor stocks posted strong gains, with AMD shares surging nearly 19% following optimistic forecasts, while Nvidia gained around 6%.

The combination of falling oil prices and ongoing AI momentum has created a rare market environment in which investors are simultaneously expecting lower inflation pressure and strong growth opportunities in technology.

However, analysts continue to warn against excessive optimism. No final agreement with Iran has been reached, and any renewed escalation could quickly reverse the decline in oil prices.

The latest developments highlight how strongly global financial markets are currently being driven by both geopolitical expectations and technology trends — and how closely energy prices, monetary policy and AI enthusiasm have become intertwined.

SK