Concerns Over Escalating U.S.-Iran War Continue To Mount. Stocks Are Mixed

Stocks closed a negative week as concerns over further escalation in the war between the U.S. and Iran and its economic spillover continue to mount.

The S&P 500 edged up, gaining 0.05% , while the tech-heavy Nasdaq Composite underperformed, dropping 0.64%. The Dow Jones Industrial Average climbed by 0.45%, boosted by a solid performance from Apple.

Stocks had climbed earlier in the session after reports that Pakistan was pushing for a return to negotiations, but they dropped again later.

Reuters detailed that Pakistan began exploratory discussions during a recent visit from the Iranian Interior Minister to Islamabad this week.

Eskandar Momeni is considered close to the country’s powerful revolutionary guard and met with Pakistani chief Asim Munir.

“The Chinese are unhappy because Iran’s attacks on other Gulf states and the closure of the Strait of Hormuz are hitting their interests,” a Pakistani government official told the outlet.

China’s foreign ministry, in turn, said the country “supports the mediation efforts made by Pakistan and other parties.” It added that Beijing will continue to play “an active role in restoring peace and tranquility in the Middle East Gulf region as soon as possible.”

The report follows another from The New York Times on Friday, which claimed that Iran rejected a ceasefire proposal sent by the U.S. through the Iraqi prime minister.

The outlet noted that Ali al-Zaidi conveyed the proposal to Tehran after visiting Washington earlier this month.

However, he was told that Tehran was not interested in a “temporary deal” that would not address the status of the Hormuz Strait, a sticking point in negotiations that led to the current flare up.

At the same time, President Donald Trump told Axios that he is close to making a decision on whether to launch a “massive attack” against Iran.

“I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it,” the president told the outlet.

He went on to say that Tehran wants to negotiate but he believes the regime has not “received enough pain yet.”

The New York Times also reported on Friday that Trump was holding a meeting with top officials to decide whether to escalate further.