S&P 500 drifts higher to record levels, but gains capped as oil rises

The S&P 500 rose to a fresh record high on Monday, but gains were limited as stalled Iran peace talks and a fresh escalation in the Strait of Hormuz pushed oil prices higher.

The broad market index last traded up 0.1% after reaching a new all-time high in the session. The Nasdaq Composite gained 0.2% and also scored a new all-time intraday high. The Dow Jones Industrial Average fell 92 points, or 0.2%.

President Donald Trump on Saturday scrapped plans to send U.S. special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran, noting the negotiations could happen by phone.

“Too much time wasted on traveling, too much work!” the president wrote in a post on Truth Social. “Nobody knows who is in charge, including them. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”

Iran’s Foreign Ministry spokesperson Esmaeil Baqaei said no meeting between Tehran and Washington is currently planned.

Oil prices were higher on Monday as the U.S. and Iran remained in a stalemate. West Texas Intermediate futures rose 2% to above $96 a barrel, while international benchmark Brent oil futures gained 3% to top $108 per barrel.

To be sure, an Axios report that said Iran has offered a new proposal to the U.S. for reopening the Strait of Hormuz and ending the war while suggesting that nuclear talks be deferred.