Wall Street climbs as investors eye potential US-Iran diplomatic breakthrough
US stocks rose while oil prices slipped after Iran's foreign minister suggested reopening the Strait of Hormuz within a week.
Wall Street saw gains as the S&P 500 ended higher, buoyed by optimism that Iran might reopen the Strait of Hormuz within seven days, a proposal put forward by foreign minister Abbas Araghchi. The suggestion came amid tough speeches from US President Donald Trump and Iranian President Masoud Pezeshkian at the UN General Assembly. Market analysts were divided, with some questioning the durability of Iran's offer while others noted a modest easing in oil prices.
Rising yields on US and Japanese government bonds reflected lingering worries about supply risks and potential interest-rate hikes. Additionally, a friendly meeting between Donald Trump and Chinese President Xi Jinping lifted sentiment, though trade issues between the US and China remain unresolved.
Why it matters
The story signals how diplomatic moves can quickly influence global markets and energy prices.
How this story developed
- Sep 2 Diesel hits $5.68 per gallon, highest since 2022, as Trump urges price cuts
- Sep 17 In its first rate increase since 2023, the Fed lifted the policy rate by a quarter point to a 3.75-4.00% range, with every governor supporting the decision. Market participants interpret the action as a more hawkish stance, prompting concerns for rate-sensitive assets such as small-cap stocks. The lack of clear forward guidance from new chair Kevin Warsh adds to uncertainty, while forecasts point to at least one additional hike this year and a pause in 2027.
- Sep 17 The Federal Reserve lifted its policy rate by a quarter point, its first increase in three years.
- Sep 18 Asian equities rose on Friday while the yen slipped, as oil prices fell and investors eyed the Bank of Japan’s upcoming rate hike.
- Sep 18 The Sejm voted to pass the extraordinary‑profits tax on fuel companies.
- Sep 19 Diesel prices reached $5.68 per gallon, the highest figure since 2022.
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 20 Oil benchmarks rose on Monday following a missile and drone attack by Yemen’s Iran-backed Houthis on Saudi Arabia’s capital Riyadh.
- Sep 22 Oil prices fell and AI data demand boosted semiconductor stocks, reversing earlier concerns about oil‑driven market pressure.
- Sep 22 AMD’s market value reached $1 trillion.
- Sep 24 Iran’s president publicly rejected any surrender to the United States at the UN.
- Sep 25 Refinery output shifts and refinery strikes have created a measurable shortfall in bunker‑fuel supply for the third quarter.
- Sep 25 Bond yields climbed back above 5% and oil prices rebounded, pushing Wall Street lower.
- Sep 25 US stock futures rose on Friday as Treasury yields slipped and Brent crude fell to $98.83 a barrel.
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