Stocks rally, oil falls as US and Iran reportedly close in on deal to end war
Stocks rallied and oil prices fell after Axios reported that the White House is closing in on an agreement to end the war with Iran, which would lift restrictions around transit through the Strait of Hormuz.
The one-page, 14-point memorandum of understanding to end the war also reportedly includes Iran committing to a moratorium on nuclear enrichment and the US agreeing to lift its sanctions, among other things.
Many of the terms would hinge on a final agreement being reached, potentially leaving the chance for “an extended limbo in which the hot war has stopped but nothing is truly resolved,” per Axios.
S&P 500 futures, which were already in the green in the early hours of Wednesday, got a jolt on the news and are currently up 0.7% as of 6 a.m. ET.
Brent crude futures fell 6.90% to $102.29 per barrel. Oil and gas producers like Occidental Petroleum, Coterra Energy, APA Corporation, and ConocoPhillips fell in premarket trading along with oil giants Exxon and Chevron.
Meanwhile, airlines and cruise lines — several of which just told investors high fuel prices would weigh on their profits — rose in early trading. Delta Air Lines, United Airlines, JetBlue, American Airlines, Royal Caribbean, Carnival, and Norwegian all rose.
Many of the terms would hinge on a final agreement being reached, potentially leaving the chance for “an extended limbo in which the hot war has stopped but nothing is truly resolved,” per Axios.
S&P 500 futures, which were already in the green in the early hours of Wednesday, got a jolt on the news and are currently up 0.7% as of 6 a.m. ET.
Brent crude futures fell 6.90% to $102.29 per barrel. Oil and gas producers like Occidental Petroleum, Coterra Energy, APA Corporation, and ConocoPhillips fell in premarket trading along with oil giants Exxon and Chevron.
Meanwhile, airlines and cruise lines — several of which just told investors high fuel prices would weigh on their profits — rose in early trading. Delta Air Lines, United Airlines, JetBlue, American Airlines, Royal Caribbean, Carnival, and Norwegian all rose.
