Stocks rise as Iran sanctions take effect

Stocks were higher on Tuesday as traders digested the reimposition of sanctions against Iran that had been waived under the Iran nuclear deal.

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The Dow Jones Industrial Average climbed 126.73 points, or 0.5%, to 25,628.91. The S&P 500 rose 8.05 points to 2,858.45. The Nasdaq Composite gained 23.99 points, closing at 7,883.66.

It was an Obama-era agreement that gave Iran sanctions relief in exchange for curbs on its nuclear program.

In May 2018, President Trump announced that he was backing out of the Iran nuclear deal.

This will just be the first wave with the remainder re-imposed in November.

Iran shipped out almost 3 million barrels of crude per day in July. Sanctions on Iranian oil exports will take effect in November.

Second-quarter earnings continue to stream in, and Dow component Walt Disney fell short of Wall Street's expectations when it reported quarterly results after the closing bell.

Stocks were cautiously higher on Monday, due to the ongoing trade war, while earnings season is starting to wind down.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES21052.53-360.91-1.69%
SP500S&P 5002488.65-38.25-1.51%
I:COMPNASDAQ COMPOSITE INDEX7373.08309-114.23-1.53%

Meanwhile, on the tariff front, a Chinese state newspaper described as "wishful thinking" President Trump's belief that a fall in Chinese stocks was a sign of his winning the trade war and an example of his "ability to elasticize the truth."

China proposed retaliatory tariffs on $60 billion worth of U.S. goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, following a proposal by the Trump administration for a higher 25 percent tariff on $200 billion worth of Chinese imports.

FOX Business’ Ken Martin contributed to this article.