Wall Street closes higher as oil prices fall and hopes of a US-Iran détente rise

The US stock market closed slightly higher after fluctuating in early trading on Thursday (21 May 2026), as global oil prices eased and market hopes grew for progress in peace talks between the US and Iran.

Nevertheless, geopolitical tensions continue to cast a shadow over markets as the two countries still have differences over Iran’s uranium stockpiles, as well as the monitoring of the Strait of Hormuz, a key conduit for global oil supplies.

After moving into the red zone for much of the morning session, the major Wall Street indices managed to turn higher in afternoon trading. The move occurred as oil prices, which had previously surged, reversed and fell.

Quoted Reuters on Friday (22 May 2026), the Dow Jones Industrial Average rose 276.31 points, or 0.55%, to 50,285.66, marking a fresh closing high.

Meanwhile, the S&P 500 climbed 12.75 points, or 0.17%, to 7,445.72, and the Nasdaq Composite gained 22.74 points, or 0.09%, to 26,293.10.

Separately, a senior Iranian official told Reuters that there has not yet been a final agreement with the US.

Nevertheless, the gap in views between the two countries is said to be narrowing, although the issue of Iran’s uranium enrichment and control of the Strait of Hormuz remains the main obstacle to negotiations.

“We are currently at a level of market valuation that is high, partly driven by corporate earnings. During the earnings season, market attention has been more focused on earnings, so concerns about Iran were temporarily overshadowed,” Pride said.

However, as the earnings season begins to wind down, investor attention is returning to developments in Middle East geopolitics.

“We will not see many positive surprises from corporate earnings anymore. Therefore, market attention now returns to Iran. In the short term, the market will move based on rumours or announcements related to the Iran deal,” he added.