Stocks Hit Record Highs as Oil Rises on Stalled Iran Talks

Wall Street pushed deeper into record territory even as oil prices climbed sharply, a split-screen market move that underscored how investors are betting on corporate strength while consumers face another round of energy pressure. The S&P 500 last traded up 0.1% after setting a new all-time intraday high, and the Nasdaq Composite also reached a fresh peak. The Dow Jones Industrial Average moved the other way, falling 92 points, or 0.2%.

Energy markets told a very different story. Brent crude rose to $107.49 a barrel by 10:01 a.m. EDT in one update and later reached $108.36, its highest in three weeks. U.S. West Texas Intermediate crude traded at $96.85 a barrel. The gains came as peace talks between the United States and Iran stalled and shipments through the Strait of Hormuz remained limited, keeping global supplies tight.

The diplomatic standoff is now a direct market risk. Iran’s president, Masoud Pezeshkian, told Pakistan’s prime minister, Shehbaz Sharif, that U.S. actions were undermining trust and making dialogue harder. An Iranian official also warned that the Strait of Hormuz would not return to its previous state “under no circumstances.” Even so, Reuters reported that more than 30 vessels with links to Iran had crossed the blockade as of Wednesday, showing that some oil traffic was still moving.

For consumers, the surge in crude threatens to ripple quickly through gasoline and shipping costs. AAA said the U.S. national average gasoline price was $4.03 a gallon on April 23, after a six-cent weekly decline, a level that still leaves drivers paying far more than they did before the latest energy shock. The San Francisco Fed said on April 16 that volatile oil markets were significantly clouding the economic outlook, a warning that now looks more urgent as crude pushes higher again.

The latest move also deepens the contrast between market optimism and real-economy strain. Earlier record-setting equity action had already lifted sentiment, and this week’s market focus has included megacap earnings and central-bank decisions. But oil’s jump, with Brent and WTI posting their biggest weekly gains since the start of the war, is a reminder that inflation risks have not disappeared. The White House called the talks “sensitive diplomatic discussions” and said, “The United States holds the cards.” For now, stocks are celebrating resilience, while oil is pricing in a far less comfortable economic path.