S&P 500 Hits Record Highs as Oil Rallies on Iran Peace Talk Collapse

US equity markets continue to defy geopolitical headwinds, with the S&P 500 pushing to fresh record highs even as President Trump rejected Iran's peace response, escalating Middle East tensions. The breakdown in diplomatic talks has injected significant risk premium into crude oil markets, with WTI futures jumping sharply on supply disruption fears. Despite the geopolitical uncertainty, equity investors remain focused on strong corporate earnings from tech names like Intel and Micron Technology, which have supported broader risk appetite. The divergence between rising equities and surging oil prices creates a complex backdrop for USD pairs. Higher oil prices typically support commodity-linked currencies like CAD while pressuring oil-importing nations' currencies. The USD Index remains relatively steady as safe-haven demand offsets concerns about inflationary pressures from elevated energy costs. Key support for the DXY sits near recent consolidation lows, while resistance aligns with prior weekly highs. Traders should monitor further developments in Iran negotiations, as any military escalation could trigger sharp risk-off moves across forex markets.