Dow Edges Higher as Oil Prices Fall Amid Ongoing Middle East Tensions

The US stock market edged higher on Friday as Wall Street closed out a volatile week marked by rising Treasury yields, falling oil prices, and renewed hopes for a diplomatic breakthrough in the Middle East.

The Dow Jones Industrial Average added 190 points, or 0.3%, while the S&P 500 rose 0.3% and the Nasdaq Composite gained 0.4%. The modest gains came as investors assessed whether higher bond yields and elevated energy prices could keep pressure on financial markets.

Treasury yields remained near multi-year highs, with the 10-year yield at 5.188% and the 30-year yield at 5.49%, after reaching their highest levels since 2007 and 2004, respectively. Several factors contributed to the move, including hawkish comments from Federal Reserve Governor Michael Barr and persistently high energy prices linked to the Iran conflict.

The Strait of Hormuz crisis provided some relief to markets as investors assessed the possibility that it could eventually reopen. Iranian Foreign Minister Abbas Araghchi said Tehran had presented Washington with a proposal under which the Strait would be reopened within seven days if certain conditions were met and nuclear talks resumed.