US stocks near records on Iran optimism, lower oil prices

U.S. stocks climbed toward all-time highs Tuesday after President Donald Trump said Iran war negotiations were "proceeding nicely," while lower oil prices drove gains in airline and cruise stocks following Monday's market holiday.

The gains reflect investor hopes that a resolution to the Iran conflict could reopen the Strait of Hormuz — shut to most oil tankers since late February when the U.S. and Israel struck Iran — easing pressure on global energy markets and transportation costs.

The S&P 500 rose 0.4% and the Nasdaq composite gained 0.8%, pushing both indexes near record territory, while the Dow Jones Industrial Average edged down 0.2%, according to The Korea Times. All three major indexes are near all-time highs following a strong first-quarter 2026 earnings season in which most major U.S. companies reported results above analyst expectations.

Trump's optimistic remarks on Iran arrived alongside a contradictory signal: the U.S. military said it carried out "self-defense" strikes in southern Iran on missile launch sites and boats placing mines. The competing signals left investors parsing whether a diplomatic breakthrough or further escalation was more likely.

Brent crude oil partially reversed Monday's steep losses, rising 4.1% to $100.10 per barrel after a 7.1% plunge the prior session. U.S. crude fell 2.8% to $93.88 per barrel. The Strait of Hormuz has remained closed to most oil tankers since the U.S. and Israel struck Iran in late February, disrupting a critical artery for global energy shipments.

Lower fuel costs powered gains in travel stocks. United Airlines climbed 5.4% and cruise operator Carnival rose 3.2%. The 10-year Treasury yield fell to 4.50% from 4.56% late Friday, reducing pressure on growth-oriented equities, the newspaper reported.

Micron Technology surged 16.5% after UBS analyst Timothy Arcuri raised his 12-month price target for the chipmaker to $1,625. AutoZone shed 11.6% after Chief Executive Phil Daniele signaled weakening consumer demand, according to The Korea Times.

Overseas markets were mixed. South Korea's Kospi jumped 2.5% catching up after Monday's holiday closure, while London's FTSE 100 edged up 0.2% and Japan's Nikkei 225 slipped 0.2%. BP shares fell 4% after the British oil giant's chairman was ousted over governance and conduct concerns.

Consumer confidence edged lower in May following record-low sentiment reported the prior Friday, The Korea Times said. The readings suggest underlying demand pressures remain a watchpoint for investors even as geopolitical optimism provides a short-term lift to equities.