U.S. equities drifted either side of the flatline by midday Tuesday, with the S&P 500 hovering just below the record high it tested at Monday’s close, as diplomatic signals out of the Persian Gulf took the heat out of crude’s rebound and pulled Treasury yields back from multi-decade highs.
President Donald Trump hardened Washington’s negotiating stance in a Truth Social post, requiring Tehran to pay for war damages.
Meanwhile, Pakistani and Qatari officials countered with a more constructive read, flagging progress toward an agreement that would restore oil flows through the Strait of Hormuz.
WTI crude still added 1.4% to $83.29 a barrel, extending a weekly advance of 9.9% and leaving the U.S. benchmark up 45% year-to-date. Brent crude rose 1.3% to $88.84, up 11.8% over the past week.
Treasuries caught a bid. The 10-year yield eased to 4.69%, down two basis points after clearing 4.71% on Monday, while the policy-sensitive 2-year slipped to 4.24% and the 30-year held at 5.24%.
