Oil Prices Rise as U.S.-Iran Talks Stall; Stocks Reach Records

Oil prices extended gains on Monday, with Brent crude climbing to a three-week high above $109 per barrel and U.S. crude surpassing $97 per barrel. The increases followed reports of stalled peace talks between the U.S. and Iran, raising concerns over energy supplies.

Multiple sources confirmed Brent crude rose by about $4 per barrel, while U.S. crude increased by 1%. The stalled negotiations have kept the Strait of Hormuz largely closed to tanker traffic, contributing to higher prices for oil deliveries in May and June.

Iran reportedly offered a new proposal to the U.S. for reopening the strait and ending the war, with suggestions to defer nuclear talks. A White House press secretary confirmed that U.S. officials and the national security team discussed the proposal.

Despite these developments, U.S. stock indexes reached new record highs. The S&P 500 and Nasdaq Composite advanced overnight, driven by investor optimism amid AI-related gains. Asia-Pacific markets showed mixed openings, with South Korea's Kospi briefly touching a record high.

Billionaire investor Ray Dalio warned that the U.S. economy is in a stagflationary period, advising against interest rate cuts by the Federal Reserve. He stated that lowering rates would be a mistake for any potential Fed chair successor. Oil and gas stocks have outperformed the broader market, with the energy sector returning 26.6% year-to-date compared to 4.7% for the S&P 500.

“The U.S. The deal was completed in December, but Meta maintained it complied with applicable laws. This action comes ahead of planned talks between U.S. and Chinese leaders. Global military spending hit a record $2.89 trillion in 2025, driven by Europe's rearmament and major programs in Asia. The Stockholm International Peace Research Institute reported an 11th straight year of increases, fueled by wars and geopolitical upheaval. Europe's spending rose despite a U.S. pullback. Energy ETFs are outperforming oil and gas stocks amid Middle East conflict, AI-driven demand, and shifts away from technology stocks. Brent crude for June delivery rose 2.92% on Monday. West Texas Intermediate futures increased 0.39% to $96.77 per barrel, with early Asia trading showing further gains.”

Investors appear to overlook warning signs, including rising oil prices and stalled Iran talks. The energy sector's strong performance nearly doubles that of the next best sector, materials, at 14.1%. Diplomatic negotiations between the U.S. and Iran are moving slowly, exacerbating supply worries.

Chinese optical-computing provider Lightelligence is set to debut on the Hong Kong market after raising 2.5 billion Hong Kong dollars in its IPO. This follows Beijing's push against the Meta-Manus deal. Global defense outlays reflect ongoing uncertainty, with large-scale armament drives in multiple regions.