U.S. stocks reach all-time highs as oil prices hold steady ahead of talks

US stock markets closed on Wednesday, April 15, with mixed readings as the S&P 500 and Nasdaq reached fresh records, extending the week’s gains. Investors appeared to be pricing in the possibility that the US-Iran conflict could be nearing an end. Oil prices paused above $90 a barrel as traders awaited news on peace negotiations.

At the close, the S&P 500 rose 0.8% to 7,022.95, and the Nasdaq climbed 1.59% to 24,016.02. The Dow fell 72.27 points, or 0.15%, to 48,463.72.

Record highs and the week’s momentum

The Nasdaq and S&P 500 posted their highest closing levels on record. The Nasdaq rose for 11 consecutive sessions, while the S&P 500 advanced in 10 of the last 11 sessions.

Gains this week were supported by optimism that the US and Iran could reach a peace agreement. By Monday, the S&P 500 had recovered all losses since the US and Israel began attacking Iran on Feb 28, and the index has risen about 3% so far this week. Nasdaq and the Dow Jones were up about 5% and more than 1%, respectively, since the start of the week.

“Before the war, traders had reduced risk to a level consistent with the possibility that things could get very bad. And when things weren’t as bad as they feared, they bought stocks again. No one wants to miss a rising market,” said Tom Martin, portfolio manager at Globalt Investments, to CNBC.

Peace talks optimism drives sentiment

Investors also received signals from US and regional officials. In an interview with Fox Business, President Donald Trump said the conflict was nearing an end and that Iran “wants a deal badly.”

Pakistan, which is mediating the talks, also took steps to reduce the risk of renewed escalation. The head of Pakistan’s military traveled to Tehran, and two senior Pakistani officials told MS NOW that US and Iran delegations could travel to Pakistan next week for a second round of peace talks.

White House spokesperson Karoline Leavitt said the two sides are “in talks” and “we feel very good about the prospects for a deal.”

“Will there be a deal that reopens the Hormuz Strait? It seems the market thinks the answer is ‘yes’,” Mr. Martin said.

Energy markets: prices steady above $90

On energy markets, Brent crude settled up $0.14 at $94.93 a barrel, while WTI rose $0.01 to $91.29 a barrel.

Reuters reported a Tehran-connected source suggesting Iran might consider allowing ships free passage through the Hormuz Strait’s Oman side without risk of attack, potentially as part of Tehran’s proposals to the US for a broader settlement.

To date, Iran has closed the Hormuz Strait for 45 days, and the US began blockading it on April 13. Reuters said traffic through Hormuz remains limited, with only a few ships passing each day compared with more than 130 per day before the war.

Supply disruption estimates

Kpler analyst Johannes Rauball estimated total losses in Middle East crude oil and condensate supply since the start of the conflict have reached about 496 million barrels.

US sanctions stance and regional energy moves

Separately, US Treasury Secretary Scott Bessent said on Wednesday that the US will not extend waivers allowing countries to buy crude oil from Russia and Iran without facing US sanctions.

After the war began, the Trump administration waived sanctions for 30 days on oil shipments from Russia and Iran, allowing countries to purchase those barrels without sanctions. The waiver for Iranian oil expires on April 19, while the Russian oil waiver expired on April 11.

Bessent said: “We will not extend the blanket license for Russian and Iranian oil. The waiver for Russian oil applies to barrels already on the water as of March 11. Therefore, the waiver has expired.”

Japan also announced plans to set up a framework worth about $10 billion to help Asian nations secure energy supplies and bolster reserves. Russia signaled it could increase energy supplies to China, according to Russian Foreign Minister Sergei Lavrov during a visit to Beijing.