Stocks rise on Iran talks optimism despite surge in oil prices

Global stock markets moved higher on Thursday as investors responded positively to signs of progress in talks between the United States and Iran, even as oil prices climbed close to $100 per barrel.

On Wall Street, all three major indices ended the session in positive territory. The S&P 500 and Nasdaq both closed at record levels, rising about 0.4 percent, while the Dow Jones Industrial Average also posted gains after a day of mixed trading.

Investor sentiment was supported by comments from US President Donald Trump, who indicated that discussions with Iran were moving in a constructive direction. Although no formal agreement has been announced, markets are increasingly expecting a favourable outcome.

At the same time, oil prices continued to rise amid ongoing tensions in the Middle East. Brent crude surged nearly five percent, trading above $99 per barrel, while US crude also recorded strong gains.

The increase in oil prices follows continued disruption in the Strait of Hormuz, a critical route for global energy supplies. The situation has raised concerns over supply constraints, though equity markets have so far remained resilient.

Analysts said investors are focusing on the possibility of easing geopolitical tensions, which could eventually stabilise oil flows and reduce pressure on global markets.

Across Europe, stock markets showed modest movement, with London and Frankfurt closing slightly higher, while Paris edged lower. In Asia, markets performed strongly earlier in the day, with Tokyo reaching a record high and other regional indices posting gains.

Despite the positive momentum in equities, uncertainty remains. Market participants are closely watching developments in the Middle East, as the outcome of ongoing negotiations is expected to have a significant impact on both energy prices and global financial markets.