Wall Street Records on US-Iran Accord Hopes

Wall Street's major indices extended their upward climb despite ongoing Middle East tensions that had spiked oil prices. Fawad Razaqzada, an analyst at FOREX.com, noted growing market confidence in a resolution, though he cautioned it might be premature.

White House Press Secretary Karoline Leavitt indicated further US-Iran talks "would very likely" be held in Pakistan, expressing optimism for a deal, even as Iran's military threatened to block Red Sea trade if a US naval blockade continued. Jack Ablin of Cresset Capital Management attributed market cheer to strong US bank earnings reports, which confirmed consumer health and a robust credit market, suggesting the Iranian conflict had not yet impacted the US economy.

However, a Federal Reserve "beige book" survey cited the Middle East conflict as a major source of uncertainty, causing many firms to adopt a "wait-and-see posture." European markets, particularly Paris, saw declines, with French luxury firms Kering and Hermes reporting disappointing sales due to the Gulf conflict, causing Kering's shares to slump over nine percent and Hermes over seven percent.