US Stock Market Today: Wall Street Gains as Oil Drops on G-7 Stockpile Talks Amid Iran War Fears

US stocks traded higher on Tuesday as oil prices fell sharply after Group of Seven officials asked the International Energy Agency to prepare scenarios for a possible release of emergency crude reserves. 

The move came as investors tracked the war in Iran and its effect on global energy supply. By late morning in New York, the S&P 500 was up 0.4%, the NASDAQ 100 had gained 0.6%, and the Dow Jones Industrial Average was higher by 0.5%.

West Texas Intermediate crude dropped about 12% to $83.54 a barrel, while Brent crude fell about 11% to around $88. The decline followed Monday’s surge, when oil had climbed close to four-year highs as markets priced in supply disruption linked to the conflict. On Tuesday, the focus shifted to possible policy action after G-7 officials asked for technical work on reserve-release options.

Oil Price Drop Lifts US Stocks After G-7 Reserve Supply Talks

French Finance Minister Roland Lescure said G-7 governments had asked the IEA to study potential release volumes and prepare scenarios if market conditions require action. The IEA said it would review security of supply and market conditions before deciding whether emergency stocks should be made available. No reserve release was announced on Tuesday.

The drop in crude prices shaped trading across US equities through the session. Technology shares outperformed, helping lift the NASDAQ 100 more than the Dow. Investors also watched Oracle ahead of earnings due later Tuesday, keeping attention on large-cap technology names during the market rebound.

The oil move followed a rapid reversal in sentiment. Brent crude had touched about $119.50 on Monday before falling back on Tuesday, while WTI also pulled lower after a steep rise in the previous session. The change came as markets responded to comments from President Donald Trump suggesting the war could de-escalate and to preparations by major economies for possible supply support measures.

War Risks Continue to Shape Oil and Equity Market Moves

Military developments continued to shape the market backdrop. Defense Secretary Pete Hegseth said Tuesday would be the most intense day of strikes on Iran since the campaign began on Feb. 28. He said the number of fighter jets and bombers deployed would be the highest of the campaign so far.

US officials also said military operations included strikes on Iranian mine-laying vessels and other targets tied to threats against shipping. Senior officials said the campaign was aimed in part at protecting maritime traffic and responding to threats around the Strait of Hormuz, a key route for global oil shipments.

Trump said the war could de-escalate soon, comments that helped pressure oil prices lower during Tuesday’s trade. At the same time, Iranian officials maintained a hard line. Iran’s Revolutionary Guards warned that a blockade of oil exports from the Gulf would continue until attacks end, while Iran’s foreign minister said talks with the United States were not on the agenda.

These developments left oil, rather than economic data, at the center of Tuesday’s US stock market action. The day’s move in equities tracked the fall in crude as investors responded to each update on reserve planning, military operations, and shipping risk in the Gulf.

Corporate Highlights on Tuesday

Company-specific developments added to the day’s trading activity:

• Alphabet’s Google introduced AI agents for Pentagon staff to automate routine tasks.

• NVIDIA made a new investment in Thinking Machines Lab, founded by Mira Murati.

• Amazon launched a major bond offering to support AI-related spending.

• AT&T said it will invest more than $250 billion over five years.

• Hewlett-Packard Enterprise fell after reporting weaker-than-expected revenue.

• Teladoc Health rose after Deutsche Bank upgraded the stock to buy.

• Kohl’s shares rebounded after management expressed confidence in current-year performance.

• Honeywell Aerospace began its first US investment-grade bond sale ahead of a planned spinoff.

• Bill Ackman prepared a combined IPO tied to his hedge fund business and a new fund.

• Novo Nordisk received an FDA warning letter tied to Ozempic side-effect reporting.

By midday Tuesday, US stocks were higher, oil prices were sharply lower, and markets were focused on whether emergency stockpile planning would be enough to limit energy disruption from the Iran war. The S&P 500, NASDAQ 100, and Dow all held gains as crude retreated and officials outlined both supply-support preparations and an intensified phase of military action.

Also Read: Share Market News: Sensex and Nifty Recover as Oil Prices Fall on Middle East War Update