US stocks were in green after the opening bell on Friday as oil prices dipped amid optimism over a possible reopening of the Strait of Hormuz, while Treasury yields fell.
The gains were led Dow Jones Insutrial Average, up 0.26% at 51,482.7, Nasdaq Composite rose 0.13% at 26,973.28, while S&P 500 jumped 0.12% to 7,713.5.
The rally comes as oil prices slipped following reports that the US and Iran were looking a phased framework to reopen the Strait of Hormuz, providing markets a potential route out of one of the biggest supply disruptions of the conflict. Brent crude fell toward $106 a barrel after rising more than 7% over the previous two sessions, while West Texas Intermediate was below $94.
Meanwhile, US Treasury yields fell to 5.18% after a sharp spike. The 10-year Treasury yield earlier jumped to 5.22% late Thursday, its highest level since 2007, while the 30-year yield touched 5.50%. Higher yields have been driven by hawkish comments from Federal Reserve Governor Michael Barr, elevated energy prices linked to the Iran war and a stronger-than-expected purchasing managers' report, according to reports.
In terms of US-Iran conflict, Tehran has proposed a seven-day plan to end tensions with the United States, reopen the Strait of Hormuz and restart nuclear talks, its foreign minister said on Friday. Foreign Minister Abbas Araghchi told reporters at the UN General Assembly that the proposal was largely similar to memorandum of understanding reached between Washington and Tehran in June, which had since collapsed, but was designed to move at a far faster pace, compressing what had earlier been a 60-day negotiating window, reported New York Times.
According to the terms, all hostilities, including in Lebanon, would end during the seven days, the US would release an estimated $12 billion in frozen Iranian assets, waive oil sanctions and lift its naval blockade, before the Strait of Hormuz reopened on the final day and comprehensive nuclear negotiations began immediately after.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.