Stocks End Mixed as Iran Tensions and Oil Surge Keep Investors Cautious

Markets stabilize late in session as diplomatic signals ease fears ahead of holiday closure.

By yourNEWS Media Newsroom

U.S. equities closed mixed Thursday, trimming earlier losses as investors weighed escalating tensions involving President Donald Trump’s warnings toward Iran against emerging diplomatic efforts in the Middle East ahead of the Good Friday market closure.

Markets opened lower following a spike in oil prices after Trump signaled the possibility of more aggressive action, raising concerns about potential disruptions to global energy supplies. However, sentiment improved later in the day after Iran’s foreign ministry indicated it was working with Oman on a protocol to manage traffic through the Strait of Hormuz, while Britain said multiple countries were engaged in talks aimed at resolving the crisis.

Energy markets reflected the uncertainty. U.S. crude rose about 11% to roughly $111 per barrel, while Brent crude gained approximately 7% to near $108. Despite the surge, forward pricing suggested expectations of a temporary disruption, with October contracts trading closer to $82 per barrel.

“The market has no real conviction either way right now,” said Michael Antonelli of Baird, noting that forward oil prices indicate expectations the crisis could ease by the fall.

According to preliminary data, the S&P 500 edged up 0.11% to 6,582.58, while the Nasdaq Composite gained 0.18% to 21,876.87. The Dow Jones Industrial Average declined 0.13% to 46,504.51.

Sector performance reflected a defensive tilt. Utilities, often viewed as stable during periods of uncertainty, advanced, while consumer discretionary stocks led losses. Shares of Tesla declined following the release of its first-quarter delivery figures.

Investor caution also resurfaced in private credit markets after Blue Owl Capital limited withdrawals from two retail-focused funds.

In corporate developments, SpaceX, led by Elon Musk, reportedly filed confidentially for a U.S. initial public offering, targeting a valuation of approximately $1.75 trillion. Meanwhile, shares of Globalstar surged following reports that Amazon is in discussions to acquire the satellite communications firm.

Attention now turns to upcoming labor market data, though trading will pause for the holiday, with U.S. markets closed Friday.