S&P 500 Holds Highs as Oil Drops; USD/JPY and Gold React to Iran

US equity markets remain resilient near record levels as oil prices pull back from earlier highs amid cautious optimism around potential Iran diplomatic talks. The S&P 500 is holding firm despite elevated geopolitical uncertainty, reflecting investor confidence in corporate earnings and the domestic economic outlook. USD/JPY continues to trade at elevated levels, supported by wide US-Japan yield differentials, though traders remain wary of potential Bank of Japan intervention if the pair pushes toward key psychological levels. Gold spot prices remain bid above key support as safe-haven demand persists, with XAU/USD benefiting from ongoing Middle East tensions and inflation hedging flows. The Nasdaq 100 is outperforming on the session, led by mega-cap tech resilience. For forex traders, the interplay between falling crude prices and persistent geopolitical risk creates a nuanced environment — a sustained oil pullback could ease inflation fears and reduce hawkish central bank pressure, potentially weighing on the dollar. Near-term focus shifts to upcoming US employment data and further Iran-related developments.