US stocks staged an intraday reversal after reports surfaced of progress toward a deal between Washington and Tehran. What started as a red session flipped green as traders recalculated the odds of a diplomatic resolution that could reshape global energy markets.
Oil was the first domino. Brent crude dropped roughly 5%, falling to around $94 per barrel as de-escalation hopes took hold.
The Strait of Hormuz factor
The Strait of Hormuz carries up to one-fifth of the world’s oil supply. That narrow waterway between Iran and Oman is essentially the jugular vein of global energy markets.
US officials have indicated a draft deal was in place. But Iranian sources painted a more cautious picture, suggesting that a final agreement was not imminent. This pattern has played out multiple times throughout May 2026, with sessions around May 6, May 21, and late May all featuring similar dynamics: stocks dipping early, deal headlines hitting the wire, and markets reversing course.
