Wall Street steadies and oil trades below US$80 with focus on end to Iran conflict

Wall Street futures pointed toward modest gains in premarket trading on Wednesday, with Nasdaq futures rising 0.4% while S&P 500 and Dow Jones futures remained unchanged. Oil prices steadied below $80 per barrel, driven by optimism that Iran will reopen the Strait of Hormuz under a tentative U.S.-Iran deal due to be signed in Switzerland on Friday. Leaked details reveal the U.S. would provide $300 billion for Iran’s post-war reconstruction and lift all sanctions if a final nuclear agreement is reached, surpassing concessions made in the 2015 nuclear deal. Brent crude, the global benchmark, edged up slightly to $79.43 per barrel after a 5% drop on Tuesday, remaining above $70—a level seen before the Iran war began. U.S. crude inched up to $76.65 per barrel. Economists at HSBC noted that restoring oil flows will face challenges, including mine clearance, insurance, and restarting idled production fields. Meanwhile, the Federal Reserve concluded a two-day policy meeting, keeping its benchmark rate unchanged despite pressure from President Donald Trump to cut rates. Analysts at Morningstar suggested the Fed will likely pause on rate hikes in 2026 due to inflation concerns tied to energy prices. In equities, chip stocks recovered after losses the prior day, with Micron rising 3.5% and Intel climbing 3.1%. La-Z-Boy surged over 16% after exceeding profit expectations. European markets showed mixed movements, with Britain’s FTSE 100 unchanged amid steady inflation at 2.8%, while Germany’s DAX remained flat and France’s CAC 40 rose slightly. Asian markets mostly advanced, with Japan’s Nikkei 225 and South Korea’s Kospi hitting record highs, driven by strong exports and tech demand. Samsung Electronics rose 1%, and SK Hynix climbed 5.8%, despite AI-related sell-offs in the U.S. Hong Kong’s Hang Seng fell 0.7%, while China’s Shanghai Composite and India’s Sensex rose modestly. Australia’s S&P/ASX 200 climbed 0.5%, and Taiwan’s Taiex added 0.2%. The market reaction reflects cautious optimism over the Iran deal’s potential to stabilize oil prices, though economic uncertainties and Fed policy decisions remain key factors influencing global trading.