Oil Jumps on Report Iran to Halt Exchanges With US: Markets Wrap
(Bloomberg) — A renewed rally in oil prices drove bonds lower while stocks fluctuated as a report that Iran will halt talks with the US cast doubt on a ceasefire renewal.
West Texas Intermediate crude jumped over 7%, topping $93. Concerns that elevated energy costs could boost inflation spurred losses in Treasuries, with 10-year yields hitting 4.5%. The dollar climbed. While the S&P 500 wavered, technology shares kept rising.
Wall Street continued to get whipsawed by multiple geopolitical headlines, with moves in oil remaining in the driver’s seat.
Iran said it would suspend “talks and the exchange of documents through mediators” in protest for Israel’s assault in Lebanon, Tasnim reported. Tehran warned it could target northern Israel if the attacks continue, according to semi-official Iranian Students’ News Agency.
Separately, Axios reported that the speaker of the Lebanese parliament told the US on Sunday that Hezbollah is ready for a full and immediate ceasefire with Israel.
While tensions remained high in the Middle East, President Donald Trump said talks over an interim peace accord between the US and Iran will “work out well.”
“Expectations for a US-Iran agreement remain fluid,” said Jason Pride and Michael Reynolds at Glenmede. “Recent strikes and conflicting statements from both sides highlight that key details remain unresolved.”
Washington and Tehran have been indirectly trading messages on a draft deal — which would likely see the two sides extend their ceasefire by around two months, with Iran reopening the Strait of Hormuz and the US lifting a blockade of ports.
While progress toward a deal appears likely over time, conditions in the Strait remain fragile and the direction of energy prices will continue to play a key role in shaping the near-term outlook for inflation and interest rates, the Glenmede strategists added.
US manufacturing activity expanded in May at the fastest pace in four years. The Institute for Supply Management’s data also indicated materials’ costs continued to rise sharply for producers, with the group’s price gauge remaining close to levels not seen since 2022.
Combined with the renewed advance in oil, the report added to speculation the Federal Reserve’s next move on interest rates will be a hike.
Corporate Highlights:
Nvidia Corp. is entering the PC market with a new chip aimed at loosening the stranglehold of Intel Corp. technology in that arena and modernizing the machines for the AI era. Software stocks rallied after Nvidia CEO Jensen Huang rebuffed concerns that the industry is at risk of being disrupted by more advanced AI tools. Barry Diller has made an offer for the remaining portion of MGM Resorts International he doesn’t already own, marking the latest pivot for the billionaire media mogul after overhauling IAC Inc. Berkshire Hathaway Inc. will acquire Taylor Morrison Home Corp. in an all-cash deal worth about $6.8 billion, the first major purchase under chief executive Greg Abel and a vote of confidence in the US housing market. Weeks after Michael Saylor opened the door to selling Bitcoin, Strategy Inc. disposed of about $2.5 million of the cryptocurrency, a symbolic break from the maximalist playbook that helped make the company one of the market’s largest buyers. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.1% as of 12:02 p.m. New York time The Nasdaq 100 rose 0.5% The Dow Jones Industrial Average fell 0.2% The Stoxx Europe 600 fell 0.8% The MSCI World Index fell 0.2% Currencies
The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.3% to $1.1624 The British pound was little changed at $1.3451 The Japanese yen fell 0.2% to 159.65 per dollar Cryptocurrencies
Bitcoin fell 3.6% to $71,019.48 Ether fell 1.8% to $1,968.03 Bonds
The yield on 10-year Treasuries advanced six basis points to 4.50% Germany’s 10-year yield advanced seven basis points to 3.00% Britain’s 10-year yield advanced nine basis points to 4.90% Commodities
West Texas Intermediate crude rose 7.3% to $93.76 a barrel Spot gold fell 1.4% to $4,474.60 an ounce ©2026 Bloomberg L.P.
