US stocks rise as oil extends rout on stockpile talks

Tech shares outperformed, with traders bracing for Oracle Corp.’s earnings later Tuesday, looking for clues on its spending plans amid rising skepticism around artificial intelligence

• US stocks stalled as oil slide failed to boost risk appetite
• Iran war threatens global energy supplies and market stability
• Trump vows to escort tankers; oil prices drop but risks remain

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A rebound in stocks gained further steam as oil tumbled on hopes the world’s largest economies will be ready to deploy stockpiles, with the war in Iran posing threats to global supplies. The dollar fell. Bitcoin jumped.

The S&P 500 wiped out losses as US crude tumbled to $83 after the Group of Seven nations tasked the International Energy Agency with studying the volumes that could be released. Tech shares outperformed, with traders bracing for Oracle Corp.’s earnings later Tuesday, looking for clues on its spending plans amid rising skepticism around artificial intelligence.

Meantime, the Pentagon said it’s conducting the most intense day of attacks against Iran and won’t give up until the Islamic Republic is defeated, striking a more aggressive tone after President Donald Trump’s suggestion the war could end soon.

Defense Secretary Pete Hegseth made the comments during a press conference Tuesday. They suggested the US-Israeli campaign that began on Feb. 28 may still have some way to run. Iran Foreign Minister Abbas Araghchi told PBS’s News Hour on Monday that talks with the US are not “on our agenda.”

“While traders welcomed the sudden drop in oil prices, the geopolitical backdrop remains far from stable, leaving markets vulnerable to further volatility,” said Fawad Razaqzada at Forex.com. “Against this backdrop, our near-term crude oil forecast remains cautious. We could yet see more volatility as Iran vows to fight.”

Addressing concerns about soaring energy prices, Trump said Monday that the US Navy will escort tankers to maintain a steady oil supply through the Strait of Hormuz. The effective closure of the waterway — vital to the world’s flow of petroleum — has created bottlenecks and caused regional energy giants to slash production.

“Trump’s words have sparked significant unwinding in oil and energy prices, helping to ease those fears of inflationary pressures,” said Fiona Cincotta at City Index. “However, we are definitely not out of the woods yet, and any gains will remain limited until there are clear signs of an end to hostilities in the Gulf and shipping through the Strait of Hormuz improves.”

The United Arab Emirates halted its huge Ruwais oil refinery, one of the world’s largest, as a precautionary measure after a drone strike caused a fire in the industrial area in which it’s located, according to people familiar with the matter. Meantime, Saudi Aramco’s chief warned the impact on oil markets will be “catastrophic” the longer the disruption from the Iran war drags on.

Investors betting on a hawkish response to rising oil prices could be misreading the Federal Reserve, according to Bank of America Corp., which warns that supply shocks can also result in periods of stable interest rates and even deep cuts.

An energy shock isn’t necessarily hawkish, US economist Aditya Bhave noted, because it can create tension between the central bank’s mandates to promote stable prices and support employment.