Oil Prices Fall and Global Stocks Rise on Hopes of U.S.–Iran Deal
Global markets rallied and oil prices fell after reports that the United States and Iran are close to reaching a deal to end the ongoing conflict.
Brent crude, the global benchmark, dropped to around $97 per barrel after earlier trading above $108, reflecting easing concerns over supply disruptions. Prices remain elevated compared with pre-conflict levels of around $70.
Stock markets responded positively to the news. The FTSE 100 rose more than 2%, while Germany’s DAX and France’s CAC 40 also posted strong gains. Asian markets closed higher, led by a surge in South Korea’s Kospi index.
The movements follow reports that Washington is close to agreeing a preliminary framework with Iran that could end hostilities and pave the way for further negotiations, including reopening the Strait of Hormuz.
The waterway, which carries about a fifth of global oil and gas shipments, has been effectively disrupted by the conflict, driving volatility in energy markets.
While a ceasefire agreed in April briefly stabilised prices, renewed tensions, including a US naval escort mission dubbed «Project Freedom», had raised fresh concerns. The operation has since been paused as diplomatic talks continue.
Analysts say markets are reacting to the prospect of de-escalation, though uncertainty remains as both sides continue negotiations.
