{"id":61828,"date":"2026-05-11T17:38:35","date_gmt":"2026-05-11T21:38:35","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/"},"modified":"2026-05-11T17:38:35","modified_gmt":"2026-05-11T21:38:35","slug":"s-oil-surges-as-us-iran-peace-talks-collapse","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/","title":{"rendered":"S&#038;P 500 Hits Record High Amid Middle East Escalation; Oil Surges as US-Iran Peace Talks Collapse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/#Markets_Hit_Records_Despite_Geopolitical_Headwinds\" >Markets Hit Records Despite Geopolitical Headwinds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/#US-Iran_Peace_Talks_Collapse_as_UAE_Strikes_Reported\" >US-Iran Peace Talks Collapse as UAE Strikes Reported<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/#UK_Political_Turmoil_Intensifies\" >UK Political Turmoil Intensifies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/#Defense_and_Strategic_Fiscal_Shifts\" >Defense and Strategic Fiscal Shifts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/s-oil-surges-as-us-iran-peace-talks-collapse\/61828\/#Trade_Tensions_and_the_Road_Ahead\" >Trade Tensions and the Road Ahead<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>The <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) reached a new record high<\/strong> as investors prioritized AI-driven momentum in chipmakers over rising geopolitical risks and a spike in Treasury yields.<\/li>\n<li><strong>Global oil prices surged toward $105 per barrel<\/strong> after the United States and Iran failed to reach a peace deal, reviving fears of a prolonged blockade in the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>The UAE reportedly conducted secret military strikes on Iran<\/strong>, including an attack on a refinery on <strong>Lavan Island<\/strong>, according to a <em>Wall Street Journal<\/em> report citing intelligence sources.<\/li>\n<li><strong>UK Prime Minister Keir Starmer faces a leadership crisis<\/strong> as Deputy PM David Lammy and over 60 Labour MPs called for a formal timetable for his departure following poor local election results.<\/li>\n<li><strong>The Pentagon has officially backed the Navy\u2019s next-generation stealth fighter program<\/strong>, signaling a major shift to replace the aging F\/A-18 Super Hornet fleet.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Markets_Hit_Records_Despite_Geopolitical_Headwinds\"><\/span>Markets Hit Records Despite Geopolitical Headwinds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>S&amp;P 500 (<a href=\"\/stock\/SPY\">SPY<\/a>)<\/strong> climbed to another all-time high on Monday, fueled by a massive rally in technology and semiconductor stocks. Investors continued to pour capital into AI-related leaders like Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and Micron Technology (<a href=\"\/stock\/MU\">MU<\/a>), effectively decoupling equity performance from the worsening situation in the Middle East.<\/p>\n<p>This record-breaking run occurred despite a significant move in the bond market, where the <strong>10-year Treasury yield<\/strong> rose to <strong>4.40%<\/strong>. The failure of diplomatic talks between Washington and Tehran has led traders to price out the possibility of near-term <strong>Federal Reserve<\/strong> rate cuts as inflation concerns re-emerge.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US-Iran_Peace_Talks_Collapse_as_UAE_Strikes_Reported\"><\/span>US-Iran Peace Talks Collapse as UAE Strikes Reported<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Diplomatic efforts to end the conflict in the Persian Gulf hit a wall after President <strong>Donald Trump<\/strong> rejected Iran&#39;s latest 14-point proposal, labeling it &quot;totally unacceptable.&quot; Iranian Parliament Speaker <strong>Mohammad Bagher Ghalibaf<\/strong> retaliated by stating there is &quot;no alternative&quot; but for the U.S. to accept Iranian rights as outlined in their proposal.<\/p>\n<p>Simultaneously, a report from the <em>Wall Street Journal<\/em> revealed that the <strong>United Arab Emirates (UAE)<\/strong> has conducted covert military strikes within Iranian territory. The most significant of these was an aerial assault on a refinery on <strong>Lavan Island<\/strong>, a critical node in Iran&#39;s energy infrastructure, which has further destabilized global oil markets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"UK_Political_Turmoil_Intensifies\"><\/span>UK Political Turmoil Intensifies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In London, the Labour government is facing its most significant internal challenge since taking power. <strong>Deputy PM David Lammy<\/strong> has reportedly urged <strong>Prime Minister Keir Starmer<\/strong> to outline a clear timetable for his departure to stabilize the party.<\/p>\n<p>This move follows a disastrous set of local election results where Labour lost nearly <strong>1,500 council seats<\/strong>. With over <strong>60 MPs<\/strong> now publicly calling for a leadership transition, speculation is mounting regarding potential successors, including Health Secretary <strong>Wes Streeting<\/strong> and Greater Manchester Mayor <strong>Andy Burnham<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defense_and_Strategic_Fiscal_Shifts\"><\/span>Defense and Strategic Fiscal Shifts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Pentagon has reversed its previous hesitation and is now fully supportive of the Navy\u2019s <strong>F\/A-XX next-generation stealth fighter<\/strong>. This program is intended to replace the <strong>Boeing (<a href=\"\/stock\/BA\">BA<\/a>)<\/strong> F\/A-18 Super Hornet, with a final contract decision between Boeing and <strong>Northrop Grumman (<a href=\"\/stock\/NOC\">NOC<\/a>)<\/strong> expected by August 2026.<\/p>\n<p>In Europe, the French state announced plans to raise approximately <strong>$3 billion (2.5 billion euros)<\/strong> through the sale of non-strategic assets. The proceeds are earmarked for &quot;strategic sovereignty&quot; sectors, specifically targeting defense and high-tech industries to reduce reliance on foreign supply chains.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trade_Tensions_and_the_Road_Ahead\"><\/span>Trade Tensions and the Road Ahead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>President Trump has signaled a return to aggressive trade tactics, reportedly telling <strong>USTR Robert Greer<\/strong> that the administration needs &quot;more tariffs&quot; to protect domestic industry. Trump maintained that while costs are currently high due to the conflict, prices will come <strong>&quot;crashing down&quot;<\/strong> once the Iran war is concluded.<\/p>\n<p>Global eyes are now turning to an upcoming high-stakes meeting between <strong>Donald Trump<\/strong> and Chinese President <strong>Xi Jinping<\/strong>. The summit is expected to address both the Middle East crisis and the ongoing trade imbalance, as the U.S. seeks to pressure Beijing into reducing its economic support for Tehran.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The S&amp;P 500 (SPY) reached a new record high as investors prioritized AI-driven momentum in chipmakers over rising 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