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Oil Slides as US-Iran Diplomatic Talks Fuel Market Rally

Crude prices fell Tuesday as traders grew increasingly optimistic about a potential US-Iran agreement to reopen the Strait of Hormuz, a critical chokepoint for global energy supplies. The diplomatic progress bolstered risk appetite across Asian equities and emerging-market assets, with investors rotating into higher-yielding positions on expectations that a deal could normalize oil flows from the region. Wall Street extended its longest weekly winning streak since 2023, driven by hopes that negotiations could transform a fragile ceasefire into a durable peace accord. The Dow Jones Industrial Average climbed to record levels on the news. Energy markets appeared particularly sensitive to developments, with each positive signal from talks pushing crude lower and encouraging traders to add risk exposure. The rally reflected broader optimism that geopolitical tensions constraining commodity markets could finally ease.