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U.S. stock futures traded modestly higher on Wednesday as investors looked ahead to a closely watched Federal Reserve policy announcement, while fresh details surrounding the emerging U.S.-Iran peace agreement continued to influence sentiment across global financial markets.

Meanwhile, oil prices extended their recent decline and SpaceX (NASDAQ:SPCX) continued its remarkable post-listing surge following last week’s record-breaking market debut.

Investor sentiment has improved significantly as concerns over the conflict in the Middle East have begun to fade.

Analysts at Deutsche Bank noted that “[R]elative calm has broken out in markets since the war in the Middle East is now seemingly over.”

The easing of geopolitical uncertainty has encouraged investors to rotate back into risk assets while reducing exposure to traditional safe havens.

The main focus for markets is the conclusion of the Federal Reserve’s two-day policy meeting.

The central bank is widely expected to leave interest rates unchanged within the 3.5% to 3.75% range in what will be the first monetary policy decision under Chair Kevin Warsh.

Warsh, who was appointed by President Donald Trump, has inherited a challenging environment. While the White House has repeatedly called for lower interest rates, policymakers continue to monitor inflation risks stemming from earlier energy market disruptions.

His predecessor, Jerome Powell, frequently resisted political pressure for rate cuts, creating ongoing debate about the Federal Reserve’s independence. Powell remains a member of the Fed’s Board of Governors.

Beyond the rate decision itself, investors will closely examine the Federal Reserve’s updated economic forecasts.

Markets had previously anticipated a series of interest-rate reductions during 2026 as inflation eased. However, the oil price shock triggered by the U.S.-Israeli military campaign against Iran and the temporary closure of the Strait of Hormuz complicated that outlook.

Analysts at BofA Securities expect the new projections to reflect higher inflation expectations, lower unemployment forecasts and no interest-rate cuts this year, although they noted that “a few policymakers will likely project hikes.”

Media reports suggest that a proposed 14-point framework agreement between Washington and Tehran includes a permanent ceasefire and the reopening of critical trade and energy routes.

According to reports, the accord would include the lifting of the U.S. naval blockade, the reopening of the Strait of Hormuz and the launch of negotiations over Iran’s nuclear programme following a formal signing ceremony expected on Friday.

Bloomberg reported that the draft framework also contains provisions allowing immediate waivers for Iranian oil and petrochemical exports, alongside the release of frozen Iranian assets and a regional reconstruction initiative worth approximately US$300 billion.

In return, Iran would agree not to pursue nuclear weapons development and would neutralise its nuclear materials.

However, many elements of the agreement remain under negotiation. Deutsche Bank cautioned that the evolving framework “underscoring that this is still a high-level memorandum of understanding rather than a final settlement.”

Energy markets remained under pressure as traders anticipated increased global oil supply once Iranian exports return to international markets.

Brent crude futures fell 0.8% to US$78.35 per barrel, extending a multi-session decline that pushed prices below US$80 for the first time since March.

Although prices have retreated significantly, Brent remains above levels seen before the conflict began.

President Trump has indicated that restrictions on shipping through the Strait of Hormuz will be lifted on Friday. Nevertheless, some analysts have warned that supply chains may take time to normalise, particularly as U.S. forces continue efforts to clear naval mines reportedly placed in the waterway.

SpaceX (NASDAQ:SPCX) continued its extraordinary rally following its blockbuster initial public offering.

The stock rose 4.83% on Tuesday to close at US$201.80, giving the company an implied market value of approximately US$2.65 trillion and briefly placing it ahead of both Amazon and Microsoft among the world’s most valuable companies.

The performance comes just days after SpaceX completed the largest public offering in history, raising US$75 billion through an IPO priced at US$135 per share on June 12.

At Tuesday’s closing price, the stock had gained roughly 50% in only four trading sessions. The momentum continued in after-hours trading, where shares advanced by a further 2%.

The scale and speed of the rally have attracted widespread attention across financial markets as investors assess the long-term valuation implications of one of the world’s most closely watched technology and aerospace companies.

SpaceX stock price