US stocks jump as oil prices turn lower on speculation of export deal with Iran

• US stocks edged higher on Thursday as oil prices backed off from their highest levels since 2014.
• The drop in oil prices was sparked by speculation that a deal could be struck with Iran to increase oil supplies.
• The surge in oil over the past year has been exacerbated by Russia's invasion of Ukraine and adds to inflationary pressures.

US stocks jumped higher on Thursday, extending the rebound from Wednesday as oil prices fell from their highest levels since 2014.

The drop in oil prices occurred on speculation that a nuclear deal could be reached with Iran in the next 72 hours, which would allow the country to increase its output of oil, helping relieve supply constraints and push prices lower.

The surge in oil over the past year has added to inflationary pressures that have concerned both consumers and the Federal Reserve, and the price increase has been exacerbated over the past week following Russia's invasion of Ukraine.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:

• S&P 500: 4,413.25, up 0.61%
• Dow Jones Industrial Average: 34,124.56, up 0.69% (233.21 points)
• Nasdaq Composite: 13,812.08, up 0.45%

At its peak this week, Brent Crude oil prices hit $120 per barrel before falling back to about $112 in wake of the Iran deal speculation. An increase in oil supplies could give the Fed breathing room as it begins its first cycle of rate hikes since 2018 later this month, as it would help relieve rising prices for consumers.

The rise in input prices like commodities over the past year has ultimately led to businesses raising their prices to protect their profit margins. That's evidenced by Warren Buffett's Berkshire Hathaway, with nine of its companies raising prices over the past year.

The collapse in speculative SPAC stocks over the past year has now led to a shareholder lawsuit against billionaire's Chamath Palihapitiya and Richard Branson. The lawsuit alleges Virgin Galactic, which was brought public via a SPAC by the two investors, covered up flaws in its spaceships while Branson and Palihapitiya dumped shares.

The London stock exchange has suspended trading in Russian stocks that have fallen 99% amid the invasion of Ukraine. Russia's largest bank, Sberbank, traded for just one penny on Wednesday. The move comes as Russia closes its stock market for the fourth day in a row.

West Texas Intermediate crude oil fell as much as much as 0.6% to $109.71 per barrel. Brent crude, oil's international benchmark, fell 0.53% to 112.38.

Bitcoin rose 0.86% to $43,823.

Gold rose as much as 0.49% to $1,931.80 per ounce. The yield on the 10-year Treasury was flat at 1.88%.