Global Stocks Rise as Oil Prices Fall on Iran Deal Hopes

Global stock markets mostly moved higher Monday while oil prices dropped sharply after Donald Trump said negotiations to end the war involving Iran are making progress.

Investors reacted positively to reports suggesting the United States and Iran may be nearing an agreement that could reopen the Strait of Hormuz and ease pressure on global energy markets.

European and Asian markets post gains

Major European indexes opened higher:

• France’s CAC 40 rose 1.1%
• Germany’s DAX gained 1.0%
• Britain’s FTSE 100 added 0.2%

In Asia, markets also advanced strongly.

Japan’s Nikkei 225 surged 2.9%, while Australia’s S&P/ASX 200 climbed 0.4%.

China’s Shanghai Composite gained nearly 1%.

Markets in South Korea and Hong Kong remained closed for holiday observances.

Oil prices tumble on hopes of Strait of Hormuz reopening

Oil prices fell more than $4 per barrel after optimism grew around a potential diplomatic breakthrough.

Benchmark U.S. crude dropped to $91.83 per barrel, while Brent crude fell below $99 per barrel.

The conflict in the Middle East had previously pushed oil above $100 due to fears surrounding the closure of the Strait of Hormuz.

The waterway is one of the world’s most critical shipping routes, handling roughly 20% of global oil and gas supplies.

Countries heavily dependent on imported energy, including Japan, have been especially vulnerable to disruptions in the region.

Trump says negotiations are moving forward

Trump said discussions with Iran were “proceeding in an orderly and constructive manner.”

Regional officials also told reporters that negotiations are nearing a framework agreement that could:

• End the war
• Reopen the Strait of Hormuz
• Reduce tensions in the Persian Gulf
• Address Iran’s stockpile of highly enriched uranium

However, many details and timelines still remain unresolved.

Investors shift from fear to optimism

Analysts said markets are beginning to move away from pricing in geopolitical panic and instead are reacting to hopes for economic stabilization.

Stephen Innes, an international market analyst, said investors are increasingly pricing in a possible “peace dividend” if the crisis eases.

Lower oil prices also helped reduce concerns about inflation, which had intensified during the conflict.

Wall Street closed for Memorial Day

U.S. financial markets remained closed Monday for the Memorial Day holiday.

Still, markets were coming off a positive Friday session:

• The S&P 500 gained 0.4%
• The Dow Jones Industrial Average rose 0.6%
• The Nasdaq Composite advanced 0.2%

Strong corporate earnings reports also helped support investor confidence despite continued economic uncertainty.

Currency markets react to easing tensions

Currency markets also reflected shifting investor sentiment.

The U.S. dollar weakened slightly against the Japanese yen, while the euro strengthened against the dollar.

Analysts said easing geopolitical fears often reduce demand for traditional safe-haven assets such as the U.S. dollar.

For now, investors remain focused on whether diplomatic efforts involving Iran can produce a lasting agreement that stabilizes both global energy markets and broader financial conditions.