U.S. equity futures were steady on Wednesday evening after Iranian officials said they were reviewing a ceasefire proposal from the United States that had briefly eased market nerves earlier in the session.
By 20:19 ET (00:19 GMT), S&P 500 Futures had edged lower to 6,639.25 points. Nasdaq 100 Futures held steady at 24,371.0 points, and Dow Jones Futures slipped modestly to 46,689.0 points. The moves followed a mixed intraday pattern on Wall Street that had been buoyed when reports emerged that Washington had put forward a 15-point plan aimed at halting the recent hostilities in the Middle East.
Iran says it is reviewing the U.S. proposal
State media reported late on Wednesday that Iran is reviewing the ceasefire proposal but that Tehran does not intend to enter talks simply to declare negotiations are underway. Iranian Foreign Minister Abbas Araqchi, speaking on state television, indicated a degree of conditional openness - saying Iran could consider negotiating if its demands were satisfied - while stressing that intermediary messages did not amount to active negotiations.
Reports further indicated that Iran is insisting any ceasefire proposals involving the U.S. and Israel also include Lebanon. Those comments followed an initial rejection by Tehran of the reported 15-point U.S. plan and suggest Iran is seeking additions or changes before engaging further.
How markets reacted
Although major U.S. indexes finished the day in positive territory, they gave back much of their intraday strength as the situation returned to ambiguity. The S&P 500 rose 0.5% to close at 6,591.94 points, the NASDAQ Composite advanced 0.8% to 21,929.83 points, and the Dow Jones Industrial Average gained nearly 0.7% to end at 46,428.57 points.
Market participants were also parsing reports that Iran had presented its own five-point ceasefire outline. That plan reportedly calls for reparations from the U.S. and Israel for damage caused during recent clashes and proposes a possible toll system for ships transiting the Strait of Hormuz.
Mixed signals continued to feed uncertainty. The White House warned it would "unleash hell" on Iran if Tehran did not accept military defeat, a statement that underscores the tensions underpinning the market moves.
Commodities moved with the headlines: oil prices fell on Wednesday after reports of the U.S. ceasefire proposal, though they were observed rising in early Asian trade on Thursday.
Bottom line
Traders entered a holding pattern as Tehran’s conditional review of a U.S. proposal left open multiple outcomes. The combination of tentative diplomatic language from Iran, competing ceasefire proposals, and strong rhetoric from Washington kept volatility potential intact for equity and energy markets.