Global Stocks Rise as Oil, Dollar Fall on Hopes of Iran Peace Deal

Global markets rallied on Monday as hopes for a possible peace agreement between the United States and Iran boosted investor confidence, sending stock futures higher while oil prices and the US dollar declined.

The optimism followed comments from US President Donald Trump suggesting progress in negotiations aimed at ending the nearly three-month conflict in the Middle East and reopening the Strait of Hormuz, a critical global energy shipping route.

The war has disrupted global energy markets and fuelled inflation concerns after Iran effectively shut down the strait, through which nearly one-fifth of the world’s oil and liquefied natural gas supplies normally pass.

Although Trump said on Sunday that he had instructed US representatives not to rush into a final agreement with Tehran, investors remained hopeful after he earlier stated that both sides had “largely negotiated” a memorandum of understanding.

The prospect of easing tensions pushed oil prices sharply lower, with Brent crude falling more than four percent to $98.83 per barrel, while US West Texas Intermediate crude dropped over four percent to $92.03 per barrel.

Currency markets also reacted to the improving sentiment. The euro gained 0.37 percent against the dollar to trade at $1.1646, while the Japanese yen strengthened to 158.85 per dollar as demand for the traditional safe-haven US currency weakened.

Despite the market optimism, uncertainty remains over when the Strait of Hormuz will fully reopen, keeping investors cautious about the longer-term outlook for global energy supplies and inflation.