Traders work on the NYSE floor
U.S. and Iran officials met for three hours on Tuesday to discuss the war. AFP

Stocks were mixed on Tuesday as global leaders descended upon New York to discuss ways to address ongoing armed conflicts.

The Dow Jones Industrial Average fell 0.36%, while the S&P 500 remained flat. The tech-heavy Nasdaq Composite climbed 0.45% and reached a new record.

President Donald Trump said that U.S. and Iran officials met for three hours to discuss whether it is possible to end hostilities.

Envoys Steve Witkoff and Jared Kushner represented the Trump administration, while Iranian Foreign Minister Abbas Araghchi led the Tehran delegation.

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"Steve and Jared had a very productive meeting today with mediators of Iran," Trump said after the meeting and before seeing Arab Leaders. "I think there's a lot of momentum for them to make a deal. That's what we are hearing from everybody," he added.

Trump has also said he he would probably be open to meeting with Iranian President Masoud Pezeshkian. The Iranian official said the delegation flying to New York has full authority to conduct diplomatic talks, but Pezeshkian is not expected to meet with Trump at the moment.

At the same time, Trump also said he is in a "deciding mode" and "very big things" about the war will take place soon. "My question is, if and when do I blow the entire nation up? They better behave," Trump said. Treasury Secretary Scott Bessent also threatened to "shut down" Iranian airlines and sanction countries receiving the planes as of Wednesday.

"How do we do that? That if they land, you cannot provide them with fuel. You cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system," Bessent said.

The Iranian military also said its intelligence shows the U.S. preparing a new, large-scale strike against the country and warned of "painful retaliation" across the region. Countries deemed to be backing the strike would be considered as involved in the conflict, forces added.

Tehran also said it can reopen the Strait of Hormuz in a matter of seven days if it reaches a deal with the U.S. to ease military pressure and lift the blockade of its ports.

Citing an unnamed senior Iranian official, Reuters detailed that Tehran conveyed a proposal to the U.S. last week. "The U.S. needs ​to announce that it wants to resolve the issue diplomatically, ​make that official, and then agree on a timeline for how the process will move forward," the official said.