NEW YORK CITY, New York: U.S. stocks hit new record highs this week, even as oil markets saw sharp swings driven by ongoing tensions linked to the war with Iran.

The relative calm on Wall Street contrasted with volatility in oil markets. Prices surged this week on concerns that the Iran conflict could disrupt global supply, before retreating late in the week.

Iran has closed the Strait of Hormuz, a key shipping route for global oil, while a U.S. Navy blockade has prevented Iran from exporting its own crude. These developments have raised fears of prolonged supply disruptions.

Despite the volatility, oil prices remain significantly higher than the roughly $70 level seen before the war. However, the pullback during has helped stabilize broader financial markets.

Several companies posted strong earnings, boosting investor sentiment. Caterpillar, Eli Lilly, and Royal Caribbean each rose more than 8 percent on Thursday after beating profit expectations. Over time, stock prices tend to follow corporate earnings trends, making such results a key driver for markets.

Not all results were rewarded. Meta Platforms fell 9.4 percent despite posting better-than-expected profits, as investors focused on its plans to significantly increase spending on data centers and artificial intelligence, with projected investments of between $125 billion and $145 billion.

Microsoft dropped 4.9 percent after also raising its capital spending outlook, though analysts pointed to encouraging growth in its Azure cloud business. Amazon slipped 1.6 percent despite exceeding earnings forecasts.

In the bond market, Treasury yields edged lower as oil prices retreated and economic data suggested slower growth. The yield on the 10-year Treasury fell to 4.38 percent from 4.42 percent late on Thursday.

Economic reports showed that U.S. growth in the first quarter was weaker than expected, while inflation rose in line with forecasts. At the same time, fewer Americans filed for unemployment benefits last week, signaling resilience in the labor market despite ongoing layoffs in some sectors.

Global markets were mixed. European stocks rose after central banks, including the Bank of England and the European Central Bank, kept interest rates unchanged. In Asia, Hong Kong's Hang Seng index fell 1.3 percent, while Shanghai stocks edged up 0.1 percent following data showing modest expansion in China's factory activity.