US stocks near record high as oil falls after Trump claims Iran talks are under way

US equities moved close to record highs on Monday after President Donald Trump said talks with Iran were under way, while Brent crude fell sharply on the same day. The market reaction came amid conflicting accounts from Washington and Tehran about the status of the communications. The moves added a fresh financial-market dimension to the wider dispute over the war on Iran.

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The S&P 500 rose 1.5% and finished just below its closing record of 7,620.90 set on 2 June. The Dow Jones Industrial Average gained 1.3% to a record high of 53,178.41, while the Nasdaq Composite climbed 2.1% and remained 4.3% below its own all-time peak. In after-hours trading, futures tied to the S&P 500 were still slightly higher, suggesting the rally had not fully faded by the end of the session.

The gains were led by large technology companies, with most of the so-called Magnificent Seven advancing. Meta Platforms rose 6%, while Microsoft, Amazon and Alphabet each gained between 4.4% and 4.9%. Nvidia added 2.9% and Tesla rose 3.5%.

At the same time, Brent crude, the main international oil benchmark, fell about 5% on Monday before recovering some ground in Asian trading on Tuesday. The price moves matter because oil and equities are both sensitive to any sign of reduced geopolitical risk in the Middle East. A lower oil price can ease pressure on transport, manufacturing and consumer costs, while a rally in major US indexes can signal that investors are betting on a less disruptive outcome.

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But the reaction also showed how quickly markets can move on diplomatic claims that have not been fully confirmed by both sides. Trump said on Monday that talks with Iran were under way and that he wanted to give Tehran "every last chance" to sign a deal before facing renewed strikes. His remarks came a day after he said he had called off a planned strike, according to the supplied report.

Washington and Tehran, however, gave conflicting accounts of the communications, leaving the status of any negotiations unclear. The broader backdrop is a war on Iran that has already shaped investor expectations, energy prices and regional risk assessments. The latest session showed that even limited diplomatic signals can move global markets when they touch oil supply and the possibility of further military action.

What remains unclear is whether the reported talks are formal, who is involved, and whether they can produce any concrete change in the conflict or in market sentiment in the days ahead.

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