U.S. stock markets finished higher on Monday, as traders sought indications of advancement in negotiations for a ceasefire between the U.S. and Iran, while weighing President Donald Trump’s intensifying warnings of retaliation if Iran keeps the Strait of Hormuz closed. Iran has turned down the U.S. suggestion for a prompt ceasefire, demanding a lasting conclusion to the conflict, according to the Islamic Republic News Agency (IRNA). This came after Trump’s aggressive statements, promising severe consequences for Iran if the vital shipping route stays blocked to oil tankers. Market participants found some encouragement in reports that the U.S., Iran, and regional intermediaries were still engaged in talks about possible ceasefire conditions. All three primary U.S. stock indices posted modest gains, with the S&P 500 and Nasdaq set for their fourth straight day of increases. ‘We’re gradually moving toward a potential agreement, though it won’t happen immediately,’ commented Ryan Detrick, chief market strategist at Carson Group in Omaha. ‘There’s more dialogue happening, which is giving investors a sense of progress.’ Detrick also noted, ‘The constant fluctuations and news updates can be overwhelming, but optimism is building ahead of the earnings season, where U.S. companies are expected to deliver strong results, supporting the ongoing bull market.’ The U.S.-Iran conflict has disrupted markets for more than a month, driving up oil prices and raising inflation concerns, leading to stock declines. Although the S&P 500 was on pace for four consecutive gains, it remains about 4% lower since the start of the hostilities. Monday’s economic figures indicated activity in the U.S. services sector.
