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

Global equity markets moved higher while crude oil prices pulled back after President Donald Trump indicated he would not authorize a military strike on Iran before the upcoming vote. The shift reflects how quickly geopolitical risk premiums can unwind when a near-term flashpoint appears to recede.

For equities, the reaction is a reminder that markets price probability, not just outcomes. When the perceived odds of a conflict fall, investors typically rotate back toward risk assets, and energy costs ease as supply-disruption fears subside. Oil, which often carries a "fear premium" during Middle East tensions, tends to give back those gains fastest when the threat is deferred rather than resolved.

What to watch: whether the pullback in oil holds or proves temporary, since the underlying tensions have not disappeared — only the timing has shifted. Traders will also monitor whether equity gains broaden beyond the initial headline reaction, and whether any follow-up statements reaffirm or soften the stance. For long-term investors, single-day moves driven by political headlines are rarely a reason to adjust a diversified strategy; the more durable signals come from earnings, inflation data, and central-bank guidance.