Markets whipsawed Monday as conflicting signals around US-Iran negotiations rattled investors.
Oil prices surged after Iranian state media reported that Tehran had halted talks with Washington, raising fears of renewed disruption in the Strait of Hormuz, a critical global oil shipping route. Brent crude jumped as much as 7%, while West Texas Intermediate rose up to 8%.
The rally eased later in the day after President Donald Trump said negotiations with Iran were still moving forward at a "rapid pace" and that Iran had not informed him of any withdrawal from talks.
The uncertainty briefly pushed bond yields higher and weighed on stocks before sentiment improved. The 10-year Treasury yield climbed before settling around 4.43%, while major US indexes turned positive by the afternoon.
Investors remain focused on the geopolitical situation, as tensions involving Iran, the US, and Israel continue to influence oil prices, inflation expectations, and broader market sentiment. Nvidia also helped support equities after gaining on news of its expansion into the PC chip market.