S&P 500, Nasdaq Rise on Report of U.S.-Iran 60-Day MOU

U.S. stocks rallied Thursday after reports that U.S. and Iranian negotiators reached a preliminary 60-day memorandum of understanding to extend the current ceasefire and begin talks on Iran’s nuclear program. The S&P 500 and Nasdaq Composite rose to record highs while the Dow Jones Industrial Average was little changed.

The draft memorandum would extend the truce for 60 days and launch initial negotiations on Iran’s nuclear activities. It would also state that shipping through the Strait of Hormuz remain “unrestricted,” require Iran to remove mines in the strait within 30 days, and call for U.S. forces to lift a naval blockade gradually as commercial traffic resumes. U.S. officials described the arrangement as involving “no tolls and no harassment.”

The proposal includes an Iranian pledge not to pursue a nuclear weapon and sets early talks on inventories of highly enriched uranium and limits on enrichment activity.

U.S. officials indicated the United States would open discussions on sanctions relief and the release of frozen Iranian funds. Negotiators would also discuss mechanisms to allow Iran to receive goods and humanitarian aid during the 60-day period.

Officials familiar with the mediation indicated broad terms were largely finalized by Tuesday but that final approval by senior leaders on both sides remained necessary. A U.S. official conveyed that the president wanted a couple of days to consider the proposal. Iranian negotiators later told mediators they had received required approvals and were prepared to sign, though Iran had not publicly confirmed that position.

Markets reacted to the reports after a cautious start to the trading session. The S&P 500 rose about 0.3% and the Nasdaq Composite gained roughly 0.3%, with both indexes reaching all-time highs during the session. The Dow was down about 79 points. The U.S. dollar weakened following the headlines.

Officials cautioned that signing a memorandum would not itself produce a final, long-term agreement on Iran’s nuclear program and that substantial additional negotiations would be necessary. Mediators are working to secure formal sign-off and to move from the preliminary terms into detailed nuclear discussions.

Traders and investors have monitored developments closely because the Strait of Hormuz is a major transit route for global oil shipments and events in the region can affect energy markets.