Fragile US-Iran deal: Wall Street Back in the red

There are already weak signs regarding the truce between the Middle East and the United States, and Wall Street reacted quickly. Just a few hours after the agreement, Israel resumed attacks on Lebanon, prompting Iran to reimpose restrictions on the Strait of Hormuz. This escalation caused major market indices to drop sharply and pushed oil prices higher once again.

Decline in major indices

In the latest market reports, the Dow Jones Industrial Average (DJIA) stood at 47,777.49 points, down 132.43 points (-0.28%), confirming a bearish trend. The S&P 500 also recorded a slight decrease, falling to 6,775.36 points (-0.11%), while the Nasdaq Composite lost 0.05% to 22,623.11 points, reflecting a general weakness, particularly in the technology sector. Conversely, the Russell 2000 saw strong growth, rising 2.97% to 2,620.46 points, signaling heightened investor interest in small-cap companies, which are often more sensitive to domestic economic conditions.

Oil rally continues

The oil rally shows no signs of slowing. Despite the fragile ceasefire, overall traffic through the Strait of Hormuz has yet to recover meaningfully. So far, only a few bulk carriers, transporting dry goods rather than crude oil, have crossed this key maritime route. Today, oil prices rose again, further pressuring stock markets amid Iran’s tightened control over the strait. West Texas Intermediate futures jumped over 5%, surpassing $100 per barrel, while Brent Crude futures rose 4%, reaching above $98 per barrel.

Precious metals reassert themselves as safe-haven assets

Amid growing geopolitical uncertainty, precious metals are regaining their role as safe-haven assets. Gold saw a modest increase of 0.43%, reaching $4,796 per ounce, driven by investor demand for security in a tense global market environment. Platinum also rose 0.48%, reflecting renewed interest in the precious metals sector. While these gains are modest compared to oil, they indicate a gradual rotation of investments toward assets considered more defensive during periods of economic and political instability.