Oil prices declined while global equities advanced as investors priced in a possible de-escalation, following an exchange of proposals between the United States and Iran over suspending nuclear activity. The market move came despite ongoing military tensions and the start of a U.S. naval blockade on Iranian ports, reflecting growing bets that diplomatic efforts could resume within days.
Details
Brent crude fell to around $95 a barrel, down more than 4% after topping $100 during heightened tensions, while U.S. crude dropped to about $92, losing over 7%.
Meanwhile, the S&P 500 rose roughly 1.2%, nearing a fresh record, supported by broad gains across Asian and European markets on hopes of stabilizing supply and easing escalation risks.
The Strait of Hormuz remains the central concern, with about one-fifth of global oil supply passing through it. Flows have dropped sharply since the crisis began, amid the ongoing naval blockade and disrupted shipping traffic.
On the demand side, the International Energy Agency sharply cut its forecasts, expecting a significant daily contraction in demand this quarter, signaling that higher prices are beginning to weigh on global consumption.
What’s Next?
Markets witness two parallel tracks: the potential restart of U.S.-Iran negotiations and the recovery of oil flows through Hormuz, both seen as decisive for price direction.
