Oil Prices Rise Amid U.S.-Iran Uncertainty as Global Stock Rally Continues

Kuala Lumpur — Oil prices climbed on Friday as geopolitical uncertainty between the United States and Iran kept traders on edge, while a broad stock market rally remained intact amid hopes for diplomatic progress in the Middle East.

Brent crude rose back above $105 per barrel, extending gains as investors weighed the risk of prolonged tensions in the region despite ongoing peace talks. The rebound in oil came even as signs of potential de-escalation supported riskier assets.

U.S. stock futures edged higher in early trading, building on Thursday’s record close for the Dow Jones Industrial Average — its first in more than three months. Major indexes across Asia and Europe also advanced, driven largely by strength in technology stocks.

Yields on government bonds retreated globally as optimism around a possible U.S.-Iran peace deal eased some safe-haven demand.

The contrasting movements highlight the market’s delicate balance: persistent uncertainty over the U.S.-Iran conflict is supporting energy prices, while hopes for resolution are helping sustain the equity rally.

Analysts note that any breakthrough in diplomatic efforts could quickly shift the momentum, potentially pressuring oil prices lower while providing further fuel for stocks.

This article is a rewritten and refreshed version based on the latest market developments reported by The Wall Street Journal.