Markets react cautiously as stalled US-Iran negotiations push WTI crude above $92 and pressure S&P 500 and Nasdaq futures.
Oil prices rose nearly 4% to above $92 as US-Iran negotiations failed to produce a memorandum of understanding, despite earlier expectations of an imminent deal. Conflicting headlines and renewed military strikes added to market unease, with Iran maintaining its red lines and dimming optimism for a swift resolution.
US futures extended losses after a cautious session on Wall Street, with S&P 500 futures down 0.4% and Nasdaq futures declining 0.8%. Treasury yields also climbed, with the 10-year yield up 4 bps to 4.52%, reflecting heightened risk aversion amid geopolitical uncertainty.
Analysts noted both sides understand the terms needed for an agreement but remain deadlocked on execution. The lack of progress contrasts with earlier reports suggesting a deal was near, keeping traders on edge.