As investors watched possible US-Iran talks, one analyst said markets were showing "relief that tensions haven’t escalated".
Specialist Michael Pistillo. Left, and trader Fred's Demarco work on the floor of the New York Stock Exchange, Wednesday, May 13, 2026. (Photo: AP/Richard Drew)
20 May 2026 05:24AM
NEW YORK: Oil prices eased and stocks wavered on Tuesday (May 19), with investors tracking a potential deal between the United States and Iran and rising bond yields sounding the alarm on interest rate expectations.The yield on 30-year US Treasury bonds hit its highest level since during the global financial crisis 19 years ago, hitting as high as 5.19 per cent during the session, compared to around 4.6 per cent before the US-Israel war on Iran began in February.The move indicated growing market unease over inflation, energy prices and fiscal worries.US President Donald Trump said he had held off a major new assault against Tehran as he saw hope for securing an agreement to end the conflict.Stocks did not get much of a boost from Trump's announcement, however, with Wall Street's major indices closing in the red.European indices ended the day mixed."Investors are showing relief that tensions haven't escalated," said Russ Mould, investment director at AJ Bell.He added, however, that "oil prices remain at high enough levels to weigh on the global economy."
