U.S. stock index futures moved notably higher on Tuesday evening while crude oil prices fell back, following reports that Washington had delivered a 15-point proposal to Iran aimed at ending the ongoing war. The late-session optimism contrasted with earlier intraday weakness, as investors reacted to a wave of conflicting headlines about progress in diplomacy.
By 20:36 ET (00:36 GMT), S&P 500 Futures rose 0.8% to 6,657.0 points, Nasdaq 100 Futures jumped 1% to 24,443.75 points, and Dow Jones Futures climbed 0.8% to 46,792.0 points. Those gains came after the major indexes had finished the regular session lower, pressured by higher Treasury yields and a surge in oil prices tied to geopolitical uncertainty.
In the cash session earlier in the day, the Dow Jones Industrial Average fell 0.2%, the S&P 500 lost 0.4%, and the NASDAQ Composite dropped 0.8% as investors weighed the inflationary implications of elevated energy costs and rising bond yields.
Late-session sentiment shifted when The New York Times reported that the U.S. had sent Iran a 15-point plan that reportedly included a possible ceasefire and talks covering Tehran's nuclear and military programs. That coverage appeared to ease immediate supply concerns in energy markets, triggering a pullback in crude.
U.S. President Donald Trump said Washington was "in negotiations right now" with Iran, adding that Tehran was "talking sense" and seemed willing to strike a peace deal. He also suggested Iran could agree to abandon nuclear weapons ambitions as part of a settlement. Iranian officials, however, denied that any direct talks were underway and dismissed reports of negotiations as false, underscoring continuing uncertainty about the diplomatic path forward.
Oil benchmarks, which had surged earlier on the day, moved sharply lower in Asian trading on Wednesday as hopes for a ceasefire eased immediate supply worries. Brent and WTI each pulled back over 5% from elevated levels, a decline that helped relieve some near-term inflationary pressure and supported gains in equity futures by improving the outlook for corporate margins.
Market participants remain highly reactive to headlines tied to the conflict. Investors continue to monitor activity around the Strait of Hormuz, a vital chokepoint for global crude flows, and are watching for any sign that negotiations might produce a durable de-escalation. Until there is clearer confirmation of commitments from both sides, volatility in energy and financial markets is likely to persist.
The juxtaposition of stronger late futures and weaker regular-session performance highlights the market's sensitivity to shifting reports about diplomacy and energy supply. The reported U.S. plan and the differing official responses illustrate both the potential pathway toward easing the conflict and the substantial uncertainty that remains.