U.S. stocks closed modestly higher Thursday as investors weighed rising oil prices and fast-moving geopolitical developments tied to potential U.S.-Iran negotiations and a fragile Israel-Lebanon cease-fire. The Dow Jones Industrial Average rose to 48,578.6, up 114.88 points (0.24%), while the S&P 500 gained 18.14 points (0.26%) to 7,041.09 and the Nasdaq Composite advanced 86.69 points (0.36%) to 24,102.7.
Markets were primarily driven by renewed focus on the Middle East after President Donald Trump said the U.S. could begin discussions with Iran as soon as this weekend, signaling potential progress toward a deal. “We’re very close to making a deal,” Trump told reporters outside the White House, a comment that helped fuel a sharp move higher in energy markets amid ongoing concerns about global supply.
Crude oil futures climbed to $90.20, rising $2.07 (2.35%), as traders reacted to both the possibility of easing tensions through diplomacy and the risk that negotiations could falter, prolonging supply disruptions. According to the Associated Press, the broader conflict has already impacted energy logistics, , contributing to jet fuel shortages and flight cancellations across parts of Europe, underscoring how deeply the situation is affecting global markets.
At the same time, Trump pointed to progress on another Middle East flashpoint, saying Israel and Lebanon had agreed to begin a 10-day cease-fire following high-level discussions in Washington.
He indicated that both sides are seeking a path toward a longer-term peace agreement, though he added that it remains unclear whether the existing two-week cease-fire would need to be extended as negotiations continue.
Stocks moved unevenly throughout the session, with early trading relatively subdued before equities pushed higher into the afternoon as volatility eased and investors interpreted the latest developments as reducing near-term risk. The CBOE Volatility Index fell to 17.96, down 0.21 points (1.16%), reflecting a decline in demand for market hedges.
Gold prices edged lower to $4,811.60, down $12 (0.25%), as safe-haven demand softened alongside the drop in volatility and modest gains in equities. Meanwhile, strength in technology shares helped lift the Nasdaq, contributing to the broader market’s advance.
Investors are now looking ahead to potential U.S.-Iran talks this weekend and further updates on the Israel-Lebanon cease-fire, with both developments expected to play a central role in shaping market sentiment in the near term, particularly for energy prices and volatility.
