US stocks end in red amid Iran war uncertainty

US stocks closed lower Tuesday as investor concerns mounted over the lack of an agreement between Washington and Tehran.

The Dow fell 0.59%, or 292.96 points to end the day at 49,149.60.

The S&P 500 declined 0.63%, or 45.13 points, to 7,064.01, while the Nasdaq composite lost 0.59%, or 144.43 points, to 24,259.96.

The Volatility Index (VIX), often referred to as the market’s “fear index,” rose 3.07% to 19.50.

Market sentiment weakened after reports said plans for US Vice President JD Vance’s trip for negotiations with Iran were on ice amid what officials described as a lack of commitment from Tehran, raising doubts about prospects for a breakthrough.

US President Donald Trump later announced a unilateral extension to a two-week ceasefire set to end Wednesday, though this came after markets closed.

Trump had earlier said that while he expected the US and Iran to strike a “great deal,” military action would likely resume if no agreement was signed by the ceasefire deadline.

Meanwhile, oil prices saw an extremely volatile session as Trump announced the ceasefire with Iran would be extended, while Washington keeps its naval blockade in place.

US benchmark West Texas Intermediate crude rose 3% to settle at $90.04 per barrel, while global benchmark Brent gained 3.5% to $98.85.

The losses followed a weaker session Monday, when investors remained cautious ahead of the ceasefire deadline. The Nasdaq snapped a 13-session winning streak, its longest since 1992.

UnitedHealth rose more than 6.9% after reporting better-than-expected first-quarter results and raising its earnings outlook.

Amazon also gained more than 0.6% after agreeing to invest up to $25 billion in artificial intelligence startup Anthropic.

European markets

European stock markets also closed lower, with the pan-European Stoxx 600 index falling 0.87% to end at 616.03 points.

Britain’s FTSE 100 lost 1.05% to 10,498.09, while Germany’s DAX dropped 0.60% to 24,270.87.

France’s CAC 40 fell 1.14% to 8,235.72, Italy’s FTSE MIB declined 0.63% to 47,903.29 and Spain’s IBEX 35 was down 0.65% to 18,142.6.