Oil prices keep ticking up, stocks mixed as White House mulls Iran’s latest proposal

Oil prices jumped and stocks sank Tuesday as the White House cast doubt on President Trump’s willingness to accept an Iranian proposal to mutually lift restrictions and reopen the Strait of Hormuz to end the eight-week-old war.

Oil prices rallied more than 2%, with Brent topping to top $111, to extend Tuesday’s gains.

The White House said Mr. Trump and his team met Monday to discuss the offer, but spokeswoman Karoline Leavitt said the president had made his “red lines” clear. Sources told CBS News that Iran’s offer did not include any immediate concessions on its contentious nuclear program, which Mr. Trump has made the cornerstone of his demands for a peace deal.

Hopes for a deal had been rising before last weekend, but Mr. Trump then scrapped plans for his envoys Steve Witkoff and Jared Kushner to travel to Islamabad for talks as it became clear Iran wasn’t willing to engage on Washington’s terms.

Iran’s envoy to the United Nations Amir Saeid Iravani told a Security Council session the country would first need guarantees Washington and Israel would not attack again if it was to offer security assurances in the Gulf.

Stock prices were more mixed on Tuesday, with European shares opening with gains after a retreat in Asia.

The price of Brent crude before the war was around $70 per barrel, and it briefly shot to nearly $120 earlier in the conflict. Benchmark U.S. crude added $2.18 on Tuesday to trade at $98.55 a barrel.

In the U.S., the S&P 500 rose a modest 0.1% on Monday to another all-time high, while the Dow industrials dipped 0.1%. The Nasdaq composite index rose 0.2%. The outlook for Tuesday was slightly less optimistic, with futures for the S&P 500 slipping 0.1% and the Nasdaq down 0.4%.