Global oil prices fell sharply while stock markets around the world moved higher after reports suggested the United States and Iran may be close to reaching an agreement to end the ongoing conflict in the Middle East.
Brent crude, the international oil benchmark, dropped below $100 a barrel during trading before recovering slightly to around $101. Earlier in the day, prices had climbed above $108 due to fears over disruptions in energy supplies.
Investors reacted positively to reports that Washington and Tehran were discussing a possible framework agreement that could halt the fighting and open the door for detailed negotiations on Iran’s nuclear programme and regional security issues.
Major European markets posted strong gains, with Britain’s FTSE 100 and Germany’s DAX rising more than 2%, while France’s CAC 40 climbed 3%. Asian markets also ended higher, led by South Korea’s Kospi index.
Despite the optimism, uncertainty remains. US President Donald Trump warned that a final agreement was still not guaranteed and threatened stronger military action if talks failed.
The conflict has severely disrupted oil transport through the Strait of Hormuz, a key global shipping route that handles nearly one-fifth of the world’s oil and gas supplies. Markets are now waiting for Iran’s response to the latest US proposal, expected within days.
