Global oil prices fell sharply and stock markets rallied after signs of a breakthrough in negotiations between the United States and Iran to end the ongoing Gulf conflict.
The market reaction followed comments by President Donald Trump, who said there had been “significant progress” in diplomatic talks with Tehran. A draft memorandum of understanding to end more than two months of war is reportedly in its final stages.
According to CNN, global benchmark Brent Crude dropped 8% to $101 per barrel. Meanwhile, West Texas Intermediate (WTI) fell 9.2% to $92.8.
The drop in oil prices was accompanied by a surge in global equities. U.S. futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all pointed to strong gains, with the S&P 500 hitting a fresh record high in trading.
European markets also advanced, with the FTSE 100 in London, DAX in Frankfurt, and CAC 40 in Paris each rising more than 2%.
In Asia, markets followed the upbeat trend. South Korea’s KOSPI jumped 6.45%, while shares of Samsung Electronics surged 14.4%, pushing the company’s market value past $1 trillion for the first time.
Analysts caution that despite optimism, uncertainty remains. Experts from ING noted that a lasting peace deal is not yet guaranteed, and volatility in oil markets could persist.
Reports from Axios indicate that a one-page agreement to end the conflict is nearly finalized, with key responses from Iran expected within 48 hours. Similarly, Reuters reported that the Trump administration believes it is close to securing a deal.
Earlier, Trump had paused the U.S. naval mission Project Freedom in the Strait of Hormuz, signaling a shift toward diplomacy as both sides move closer to ending the conflict.
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