Oil down, chipmakers rise on US-Iran deal hopes

22. Sep 2026

(AWP Alliance News) - Shares ended mixed in New York on Tuesday despite a positive day for chipmakers, while oil slid on hopes that a potential meeting between US and Iranian officials this week could result in a deal to reopen the Strait of Hormuz.

The Dow Jones Industrial Average closed down 185.14 points, 0.4%, at 51,863.69. The S&P 500 ended flat at 7,764.64. The Nasdaq Composite ended up 122.18 points, 0.6%, at 27,244.28.

"Having come close to their record highs, US stock indices are finding it increasingly difficult to maintain this week's bullish momentum ahead of US President Trump's meeting with Chinese President Xi on Thursday. On the currency front, the US dollar holds firm as hawkish remarks from Federal Reserve officials bolster expectations of further interest rate hikes. In the eurozone consumer confidence weakens while UK factory orders hit their highest level since mid-2023," wrote IG Chief Technical Analyst Axel Rudolph.

"Crude oil slips towards USD90 a barrel for a fifth straight session as reports that Iran could reopen the Strait of Hormuz if the US lifts its blockade raise hopes of easing supply disruptions. Potential US-Iran talks at the UN General Assembly add to optimism, while continued Saudi crude flows through the waterway suggest supply conditions are already improving," Rudolph added.

A barrel of Brent fetched USD98.43 late Tuesday, down from USD100.11 on Monday. West Texas Intermediate fell to USD95.21 from USD95.43.

The yield on the 10-year US Treasury was at 4.95% late Tuesday, down from 4.95% on Monday. The 30-year yield rose to 5.29% from 5.28%.

Against the dollar, the euro was at USD1.1449, down from USD1.1464 on Monday. Sterling fell to USD1.3344 from USD1.3367. Against the yen, the dollar was at JPY157.38, down from JPY157.44.

Gold rose to USD4,359.88 an ounce from USD4,340.20.

US President Donald Trump told the UN General Assembly on Tuesday that he has "a big decision to make": reach a deal with Iran "that lets them rebuild and create a far greater country" or "annihilate the Islamic Republic and do it quickly".

The speech came as markets hope a potential meeting this week between Trump and Iranian President Masoud Pezeshkian could move the warring nations closer to a peace agreement.

"The US needs to announce that it wants to resolve the issue diplomatically, make that official, and then agree on a timeline for how the process will move forward," an Iranian official told Reuters on Tuesday.

However, Revolutionary Guards spokesman Hossein Mohebi said Tuesday that Tehran is now "demanding that the lifting of the blockade on Yemen be included in the agreement" with the US, a condition not present in prior negotiations.

The demand comes after Yemen's Houthis took control of areas around the strategic Bab al-Mandab Strait and declared a maritime blockade on Saudi ports.

On the corporate front, Union Pacific and Norfolk Southern on Tuesday announced two key milestones in the rail operators' effort to seal their USD85 billion merger.

First, the US Surface Transportation Board has denied requests by opponents to the agreement to dismiss the pending merger application. "With the rejection of these requests, the board can continue its review of the most comprehensive merger analysis ever submitted in support of a major rail transaction," UP said.

Second, the SMART-MD railworkers union has entered a jobs-for-life agreement with the companies, meaning the merger is now supported by a majority of unions representing employees at the operators.

The transaction is expected be completed in the second half of 2027.

UP ended up 1.8%. Norfolk Southern rose 1.6%.

In the AI space, analysts on Tuesday said strong early take-up of Meta's Muse personal agent has provided a lift for the sector.

Muse, an AI assistant that can send emails, book travel and complete transactions such as selling a car on behalf of a user, was launched on September 8.

Bank of America highlighted Muse's continued strong position on the US iOS App Store since launch, while Strategist Stephen Innes said Muse's strong ranking "evidence that AI demand may finally be moving from infrastructure promise into consumer habit."

XTB research director Kathleen Brooks noted that shares in Intel, AMD, Super Micro and Marvell Technology rose on Monday amid the rebound in sentiment.

"If AI products are popular then the hyperscalers will need even more compute capability to continue building them and expanding their capacity, which will accelerate demand for chips and memory," Brooks added.

Intel gained 1.7%, Marvell rose 1.9%, AMD gained 1.3% and Super Micro ended up 0.8%. Nvidia closed up 0.7%. Meta fell 0.6%, however.

In Europe, the FTSE 100 closed down 0.3% in London. The CAC 40 gained 0.2% in Paris. The DAX 40 ended slightly higher in Frankfurt.

In China, the Shanghai Composite closed up 0.1%. The Hang Seng in Hong Kong gained 0.2%. The S&P/ASX 200 ended up 0.3% in Sydney. The Nikkei 225 in Tokyo remained closed for a public holiday.

Wednesday's corporate calendar has first quarter results from Paychex.

The global economic calendar has US flash composite PMI and the South Africa interest rate decision. Financial markets in Japan remain closed until Thursday.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom [at] alliancenews.com