Oil Prices Retreat, Stocks Rally on US-Iran Deal Hopes
BBC Business reported Wednesday that a potential US-Iran deal sent oil prices tumbling and lifted equity markets globally, as diplomatic signals suggested both sides were edging toward an agreement to end weeks of armed conflict.
Oil Pulls Back From Wartime Peaks
Brent crude futures dropped sharply to around $97 a barrel following the reports before recovering above $101. Earlier in the session, the global benchmark had traded above $108. Oil has remained far above the roughly $70 level seen before the US-Israel military campaign against Iran began on 28 February, as fighting disrupted both production and regional shipping routes.
The Strait of Hormuz has been effectively closed for weeks. Iran threatened to target oil tankers crossing the narrow waterway in retaliation for strikes on its territory. Roughly one-fifth of the world’s oil and gas shipments typically transit the strait, making any closure a significant supply shock to global energy markets.
Stock Markets React Sharply
European benchmarks closed firmly higher on the day. London’s FTSE 100 and Germany’s DAX each gained more than 2%, while France’s CAC 40 advanced around 3%. In Asia, South Korea’s Kospi surged more than 6%, Hong Kong’s Hang Seng rose roughly 1.2%, and Japan’s Nikkei edged up 0.4%. The US S&P 500 climbed about 1% in early New York trading.
Also Read: What Closing the Strait of Hormuz Means for Global Energy
Background: Ceasefire, Escalation, and Pause
A brief ceasefire on 8 April had previously calmed oil markets, but tensions reignited after President Donald Trump launched “Project Freedom,” a US military escort operation through the Strait of Hormuz. Attacks in the waterway escalated from both sides before Trump said Tuesday he would pause the operation briefly to allow talks to progress.
A Deal Still Not Certain
Axios cited four sources in reporting that Washington was close to a one-page memorandum of understanding. The document would formally end the war and open a 30-day window to negotiate on the strait, Iran’s nuclear program, and US sanctions relief. An Iranian foreign ministry spokesperson said the US proposal remained under consideration, but Trump himself cast doubt on a swift conclusion, warning on Truth Social that bombardments could resume at greater intensity if no agreement was reached.
Secretary of State Marco Rubio told reporters Tuesday the initial offensive phase was complete and that Washington preferred a diplomatic resolution. Iran’s parliamentary speaker Mohammad Ghalibaf struck a harder tone, suggesting Tehran was prepared for a prolonged standoff.
Also Read: Rubio Says US Objectives in Iran Strikes Have Been Met
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