NEW YORK - Shares vacillated and oil prices dropped back down on Tuesday as Tehran gave an encouraging response during talks with US officials in Geneva on Iran's nuclear programme, after days of escalating rhetoric from President Donald Trump.
Oil prices had earlier risen after Trump ramped up threats towards Iran, a large crude producer, but Iranian Foreign Minister Abbas Araghchi said "a new window of opportunity has opened."
"We are hopeful that negotiation will lead to a sustainable and negotiated solution," he said, though he added that "Iran remains fully prepared to defend itself against any threat or act of aggression."
West Texas Intermediate was down 0.9 percent at $62.33 per barrel after earlier rising 1.5 percent, while international benchmark Brent North Sea Crude slipped 1.8 percent to $67.42.
"There's speculation that Iran could agree to dilute its most highly enriched uranium in exchange for the full lifting of financial sanctions, but it's not clear if that will be enough to seal a deal between the two parties," said Aarin Chiekrie, analyst at Hargreaves Lansdown.
Wall Street was vacillating earlier in the session but eventually closed marginally higher.
"Insurance brokers, wealth advisors, real estate services, and logistics were all in the firing line last week, and investors are cautiously watching for what slice of the market could be next on the AI hit list," Chiekrie added.