Major Wall Street stock indices finished at records on Wednesday, extending an upward climb on optimism about an accord in the US-Iran conflict as the White House signalled plans for more talks.

The S&P 500 rose 0.8 percent to 7,022, the Dow Jones Industrial Average fell 0.1 percent to 48,463, while the Nasdaq rose 1.6 percent to 24,016.

"Markets are growing increasingly confident that tensions in the Middle East may be heading toward some form of resolution," said Fawad Razaqzada, an analyst at FOREX.com.

"That said, it still feels a touch premature to be pricing in a smooth resolution," he added.

Talks involving US Vice President JD Vance ended last weekend without an accord.

White House Press Secretary Karoline Leavitt told reporters further US-Iran talks "would very likely" be held in Pakistan, saying "we feel good about the prospects of a deal".

On the Iranian side, a foreign ministry spokesman said "several messages" had been exchanged via Islamabad since talks wrapped up on Sunday.

But Iran's military also warned it would block trade through the Red Sea, along with the Gulf and Sea of Oman, if the US naval blockade on Iranian ports continues. (AFP)



Edited by Azam Khan