Stocks advance, oil retreats as Trump rules out pre-vote Iran attack - Yahoo News Singapore

Equity markets moved higher while crude oil prices fell after President Trump indicated he would not order a military strike on Iran before the upcoming vote. The shift reflects how quickly geopolitical risk premiums can unwind when a widely watched threat is taken off the table, at least temporarily.

For stocks, the response is best understood as a relief rally: reduced fears of a broader Middle East conflict can support risk appetite, particularly for sectors sensitive to energy costs and global trade. For oil, the pullback reflects the removal of a near-term supply-disruption premium. Crude prices often embed a geopolitical cushion when conflict risk rises, and that cushion can deflate just as fast when the perceived threat recedes.

What to watch: whether the de-escalation holds, how oil inventories and OPEC+ policy evolve, and whether equity gains broaden beyond the initial headline reaction. Markets are pricing probabilities, not certainties — and this move shows how sensitive both asset classes remain to geopolitical signals.