Oil prices slide on Iran peace hopes as Wall Street hits records

Oil prices tumbled more than 3% Thursday as Pakistan signaled a peace deal between the United States and Iran may be near, while Wall Street's major indexes climbed to fresh record highs on stronger-than-expected corporate earnings.

The development offers a glimmer of relief to Southern California consumers, who have faced punishing gas prices since the Strait of Hormuz was closed during the U.S.-Iran conflict — pushing crude above $115 a barrel earlier this week and squeezing OC households and Korean-American small businesses alike.

Brent crude fell $3.28 to $97.98 a barrel by late morning Thursday, according to The Korea Times, citing the Associated Press. The benchmark had exceeded $115 earlier in the week, driven by fears over blocked tanker routes through the Persian Gulf and Gulf of Oman.

Pakistan's Foreign Ministry spokesperson said the country has been acting as a mediator between Washington and Tehran. "We expect an agreement sooner rather than later," the spokesperson said, fueling optimism that the Strait of Hormuz — through which roughly a fifth of the world's oil flows — could soon reopen. Iran's government has been reviewing proposals put forward through the Pakistani channel.

Wall Street responded with a broad rally. The S&P 500 added 0.2% to reach an all-time high, while the Nasdaq composite gained 0.6% to its own record as of 11:45 a.m. Eastern time, the Korea Times reported. The Dow Jones Industrial Average slipped 69 points, or 0.1%, as some large-cap stocks lagged the broader market.

Earnings reports drove sharp moves in individual stocks. Datadog surged 29.6% after topping profit expectations, and Axon Enterprise rose 10.2%. Shake Shack plunged 28.6% on a disappointing quarterly report, and Whirlpool fell 12.5% after weak results weighed on investor confidence.

McDonald's CEO Chris Kempczinski said "high gasoline prices and consumer anxiety over the Iran war could dent its sales this spring" — a caution that echoes concerns shared by many OC restaurant owners and retailers navigating elevated fuel and supply costs. In Japan, the Nikkei 225 jumped 5.6% to a record, extending its 12-month gain to nearly 71%, though MONEX Chief Strategist Takashi Hiroki flagged a risk: "I think it's a kind of bubble because buying activity concentrated on leading AI, artificial intelligence stock and semiconductor-related stocks. It's a situation where only semiconductor stocks are being bought."

The 10-year U.S. Treasury yield held at 4.36%, above pre-war levels, continuing to press on mortgage rates and business borrowing costs. Even as diplomats signaled progress, a U.S. fighter jet intercepted an Iranian tanker attempting to break through the American naval blockade of the Persian Gulf, underscoring that military tensions have not fully subsided.

Analysts say a successful reopening of the Strait of Hormuz could push oil prices sharply lower within days, potentially offering meaningful relief at Southern California gas pumps for OC households and Korean-American small businesses that have borne months of elevated energy costs.