- S&P 500 and Dow futures extend gains, Nasdaq futures erase losses after report Iran has sent its response to the latest US peace proposal.
- Oil prices dip on hopes of de-escalation in the Middle East, boosting risk appetite across equity markets.
- Traders await official confirmation and details of the proposal, with diplomatic channels active.
Markets React to Diplomatic Breakthrough
U.S. equity futures climbed on Wednesday after a report indicated that Iran has transmitted its response to the latest U.S. peace proposal, raising hopes for a potential de-escalation in the Middle East. Contracts on the S&P 500 and Dow Jones Industrial Average extended their gains, while Nasdaq 100 futures reversed earlier losses.
The move comes amid heightened tensions in the region, with investors closely watching for any signs of a diplomatic resolution. “Any sign of a peaceful path forward is a major catalyst for risk assets right now,” said one equity strategist.
Oil Prices Retreat on Peace Hopes
Crude oil prices slipped on the news, with Brent crude falling over 1% as traders priced in a lower risk premium. The potential for a deal could ease concerns about disruptions to oil supplies from the Strait of Hormuz, a critical chokepoint for global crude shipments. “The market is breathing a sigh of relief, but we need to see the details,” a commodities analyst said.
What’s Next
Diplomatic sources said the proposal involves a framework for de-escalation and humanitarian measures, though specifics remain confidential. U.S. officials declined to comment on the report, while Iranian state media has not yet confirmed the development. Efforts to reach the State Department for comment were unsuccessful.
Correction: An earlier version of this article misstated the direction of Nasdaq futures; they erased losses, not extended gains.