Wall Street posts gains, oil prices fall 6% amid possibility of de-escalation in Iran

Wall Street points toward solid gains and oil prices fall 6% over the possibility of a de-escalation in Iran and negotiations with the United States.

S&P futures rise 1% before the opening bell, as do futures for the Dow Jones Industrial Average. Nasdaq futures gain 1.1%.

Oil prices retreat on growing hopes for a de-escalation. Brent crude, the international standard, fell more $6.26 to $93.97 per barrel. Benchmark US crude gave back $5.63 early Wednesday to $86.72 a barrel.

Oil prices have soared as Iran’s threats have brought shipping traffic to a virtual standstill in the Strait of Hormuz, through which about 20% of the world’s oil usually travels.

The drop in oil prices sends most of the energy sector lower, with ConocoPhillips, Exxon and Chevron all losing between 1% and 2%.

Airlines benefit from the retreat in energy prices. Delta Air Lines gains 1.8%, United rises 3.2% and American picks up 2.3%.