U.S. stock index futures moved modestly higher on Thursday as investors continued to monitor signs of progress toward a potential peace agreement between the United States and Iran. At the same time, crude prices hovered near the $100-per-barrel level, easing from recent peaks but remaining substantially above levels seen before the conflict began.
Wall Street futures extend positive momentum
At 03:39 ET, futures linked to the Dow Jones Industrial Average were up 113 points, or 0.2%. S&P 500 futures gained 15 points, also up 0.2%, while Nasdaq 100 futures advanced 77 points, or 0.3%.
The gains followed another record close for major U.S. indexes on Wednesday after reports suggested Washington and Tehran could be moving closer to an agreement that may end the war that has continued for more than two months.
Technology stocks also helped support broader market sentiment following strong earnings-related updates from companies tied to semiconductors and artificial intelligence. Advanced Micro Devices (NASDAQ:AMD) lifted chip stocks after signalling that AI-related demand remains resilient. Shares of AI server producer Super Micro Computer (NASDAQ:SMCI) surged more than 24% after issuing stronger-than-expected quarterly revenue guidance.
“[S]tocks exploded higher thanks to Iran optimism, another round of strong earnings, and additional fodder for AI bulls,” analysts at Vital Knowledge said.
Diplomatic efforts between Washington and Tehran continue
The Wall Street Journal reported that U.S. and Iranian officials have been working with mediators on a one-page proposal intended to restart negotiations on a long-term peace settlement. Talks are reportedly expected to begin next week in Pakistan.
According to the report, negotiations over the following month would attempt to resolve disagreements surrounding Iran’s nuclear programme and sanctions relief, although major sticking points remain on uranium enrichment and international inspections.
President Donald Trump said on Wednesday that the United States had effectively “won” the conflict and described recent discussions with Tehran as having been “very good” during the previous 24 hours.
Earlier in the day, Trump wrote on social media that the U.S. military campaign against Iran, launched alongside Israel in late February, would conclude if Tehran “agrees to give what has been agreed to.” He also warned that military operations could restart if negotiations fail to produce an agreement.
Iranian officials have offered mixed reactions. Iran’s foreign minister said the government was reviewing the latest American proposal and would communicate its response through Pakistan, which has often served as an intermediary between the two countries. However, separate reports cited an Iranian official who dismissed the U.S. proposal as merely an American “wish list.”
CNN reported that Iran is expected to provide its formal response to mediators by Thursday.
Oil markets remain volatile around $100 a barrel
Oil prices continued to fluctuate as traders assessed the likelihood of shipping activity resuming through the Strait of Hormuz following weeks of disruption.
Brent crude futures were recently down 2% at $99.23 per barrel.
Energy markets have experienced sharp price increases since the conflict began, largely due to the effective closure of the Strait of Hormuz, a key route for roughly one-fifth of global oil shipments. Although crude prices have pulled back from recent highs, they remain significantly elevated compared with pre-war levels.
Higher energy prices have pushed gasoline prices in the United States above $4.50 per gallon, levels not seen since the height of the pandemic-era energy crisis in 2022.
Trump said he had expected oil prices to rise even more sharply, telling reporters he thought crude could reach “$200, $250.”
He added that even at those levels, the war against Iran would have been “worth it.”
U.S. and China reportedly considering AI negotiations
The Wall Street Journal also reported that Washington and Beijing are weighing the possibility of formal talks focused on artificial intelligence.
The topic may be included in discussions during a planned summit next week in Beijing between President Donald Trump and Chinese President Xi Jinping.
According to the report, discussions would likely focus on risks linked to advanced AI systems, including unpredictable model behaviour, autonomous weapons technologies and AI-driven attacks carried out by non-state groups.
U.S. Treasury Secretary Scott Bessent is expected to lead the American delegation in any future discussions, while China has yet to appoint its lead representative.
Shell beats profit expectations despite reducing buybacks
Shell (NYSE:SHEL) reported adjusted earnings of $6.92 billion for the first quarter of 2026, ahead of analyst forecasts of $6.36 billion and above the $5.58 billion reported during the same period last year.
The energy giant said stronger trading and optimisation performance in its Downstream and Renewables businesses, alongside improved refining margins, higher realised prices and lower operating costs, helped drive profit growth.
Shell also reduced its quarterly share repurchase programme to $3 billion from $3.5 billion in the prior quarter.
Adjusted EBITDA increased to $17.7 billion from $15.3 billion a year earlier. Operating cash flow totalled $6.1 billion, impacted by an $11.2 billion working capital outflow tied to commodity price movements affecting inventories and receivables.
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