Iran Peace Hopes Lift Stocks, Crude Falls Below $100

The U.S. reportedly presented a 15-point peace plan to Iran, including demands to dismantle nuclear sites and reopen the Strait of Hormuz, a vital waterway closed for weeks. Mediators from Turkey, Egypt, and Pakistan are attempting to arrange talks.

Despite President Trump's claims of "very strong" negotiations, Tehran has rejected these assertions and set a high bar for a deal, with an Iranian military spokesperson stating the U.S. is "negotiating with" itself. Investors are concerned about the economic fallout from a prolonged conflict, as S&P Global’s flash purchasing managers index fell to an eleven-month low, indicating pressure on growth from war-related energy shocks.

Eurozone PMIs also warned of "ringing stagflation alarm bells." Gold prices rose 2.0% to $4,564.34 an ounce, and the U.S. Dollar Index dipped 0.2% to 99.21. ING analysts caution against expecting an early resolution, citing Iran's leverage from high energy prices.