US markets rise to record highs on Trump Iran peace talk

U.S. stock indexes reached new highs on Tuesday, with the S&P 500 and Nasdaq composite setting records as markets reopened after a holiday. The gains followed a global rally spurred by comments from President Donald Trump that negotiations with Iran to end the ongoing war were proceeding well. The Dow Jones Industrial Average, however, dipped slightly from its own recent peak.

The market's advance was tempered as trading progressed, with reports of continued fighting in the region. The U.S. military stated it carried out self-defense strikes in southern Iran targeting missile launch sites and boats placing mines. Market optimism for a potential peace deal has repeatedly surfaced only to be challenged by the conflict's persistence.

Oil prices were volatile, reflecting the geopolitical uncertainty. The international benchmark, Brent crude, rose over 3 percent but only partially recovered from a sharp drop the previous day. The price for U.S. crude oil fell nearly 3 percent. Oil markets have been a central focus since hostilities between the United States, Israel, and Iran began in late February, leading to the closure of the Strait of Hormuz. This blockage has trapped crude in the...