Oil swings on Iran headlines, yields rise, stocks decline

Markets:

• Gold dropped $164 to $4121
• WTI crude fell 38 cents to $92.79
• The S&P 500 declined 0.8%
• The British pound outperformed, the Swiss franc underperformed
• US 10-year yields climbed 4.8 basis points to 5.23%

At the start of the week, sentiment suggested Iran negotiations had stalled, which sent crude prices up more than $3 and pushed Treasury yields to their cyclical highs. The market braced for a tough third quarter with midterms approaching and AI encountering obstacles. Stocks opened lower, and the dollar attracted haven demand.

Later, unnamed officials first said Iran was meeting with mediators, and then White House sources described new deal proposals. This briefly reversed oil's gains, lifted equities, and pulled yields down. The flow of oil through the Saudi east-west pipeline also contributed to the same direction.

Other news was sparse, with a mediocre Dallas Fed survey failing to affect markets. The next day will bring US consumer confidence and JOLTS data.