Oil Prices Plummet as US-Iran Tensions Ease, Influencing Wall Street Stocks

Wall Street stocks experienced a mixed closing on Monday as oil prices dropped following a pause in US-Iran tensions and resumed negotiations to end the war. The S&P 500 rose less than 0.1%, with the Dow Jones Industrial Average increasing 0.5% and the Nasdaq composite falling 0.2%. This comes after two consecutive weekly losses for the three major stock indexes, which are on pace to close the month in the red.

The price of Brent crude, the international standard, dropped 6.3% to $85.87 a barrel for October delivery, reversing from last week's surge above $100 a barrel. US crude oil for September delivery fell 7.5% to settle at $82.61 a barrel.

Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, noted that this is 'a week with more than its fair share of potential surprises.' The Federal Reserve will provide an update on interest rate policy Wednesday, with Wall Street anticipating a nearly 36% chance of a rate hike. Higher rates can help cool inflation by making borrowing more expensive and slowing economic growth.