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(Bloomberg) — Hopes for a deal to end the Iran war and revive the Strait of Hormuz drove oil lower while leaving stocks near record highs, with the market also supported by enthusiasm for artificial-intelligence trades.
US crude fell below $90 as Iranian media said the unofficial draft of an interim peace deal showed traffic through the waterway can return to normal within a month of the agreement being finalized. While the news left the S&P 500 wavering, a breakneck surge in memory-chip shares intensified on bets the AI boom will lead to a sustained revaluation of the industry.
Traders have been on high alert for clues on the status of talks that could lead to a Hormuz reopening. The draft also said Iran and Oman will have a mechanism in place to oversee shipping in the strait. That’s one of the most contentious issues holding up a deal, with the US saying vessels must be allowed free passage
“Just because Iran’s state media reported something doesn’t mean the deal is done,” said Brian Jacobsen at Annex Wealth Management.
