U.S. stocks experienced a significant rise on Tuesday morning, fueled by a drop in oil prices. Investors seemed to set aside the uncertainty surrounding the ongoing conflict in Iran, leaning instead toward a peace agreement while focusing on robust earnings reports.
By about 9:45 a.m. ET, the Dow Jones Industrial Average climbed 310 points, or 0.6%. Both the S&P 500 and Nasdaq recorded a modest increase of 0.1%.
Brent crude oil prices decreased by 0.1%, settling at $95.36 per barrel. Meanwhile, West Texas Intermediate remained nearly unchanged at $87.34. Nationally, gasoline prices dipped slightly to $4.02 per gallon, but that’s still roughly 30% higher than before the conflict began.
Shares of UnitedHealth surged nearly 8% in premarket trading, marking a recovery as the health insurance giant became the latest major player to surpass earnings expectations and raise its forecasts.
However, tensions in the Middle East still linger, with President Trump stating there are no intentions to extend the Wednesday deadline for a temporary ceasefire with Iran.
In an interview on CNBC’s “Squawk Box,” Trump expressed reluctance to continue negotiations if the deadline passes without a peace agreement: “I don’t want to do that,” he stated.
The president indicated he was prepared to escalate attacks on Iran if the ceasefire concludes without a more lasting arrangement. “I expect it to bomb because I think that’s the better attitude to go into it,” he commented.
He also mentioned that he prefers not to feel rushed, arguing that opposition to war complicates negotiations, and he called out “rebellious” Poland for pressuring him to reach an agreement.
President Trump asserted earlier on his platform that Iran has consistently breached the ceasefire terms.
Additionally, he revealed on Monday that the U.S. Navy had intercepted an Iranian cargo ship, as both nations contend for control over the critical Strait of Hormuz, which is vital for 20% of the world’s oil supply.
Despite the tensions, he signaled openness to discussions with senior Iranian officials, downplaying his administration’s recent decision to boycott the next round of peace negotiations in Pakistan.
