Oil prices fell and U.S. stock futures climbed late Tuesday after reports said the U.S., working through an intermediary, had shared a multi-point cease-fire proposal aimed at ending the Iran conflict.

Market reaction was immediate: Brent’s front-month contract swung from a sharp gain earlier in the session to a steep decline in evening trading, while U.S. benchmark WTI also moved lower. The move in crude eased one of the biggest near-term headwinds for equities—energy-driven inflation fears—and helped lift equity futures.

Why it matters for stocks

- Lower oil prices can cool expectations for headline inflation and reduce pressure on consumer spending.

- Energy-price volatility has been a key driver of sector rotation, with investors reassessing risk in cyclicals and rate-sensitive groups.

- If the cease-fire path looks credible, markets could reprice geopolitical risk premia embedded in crude and credit spreads.

What to watch next

Investors will be looking for confirmation of any diplomatic channel and for follow-through in oil markets when cash trading resumes. A sustained pullback in crude could relieve pressure on bond yields and support a broader rebound in equities, while any reversal would likely restore volatility quickly.

Key numbers reported

- Brent traded down about 4.4% to roughly $95.96 a barrel in evening action after settling above $104 earlier.

- WTI was down about 4.1% to around $88.61 a barrel.