Oil Prices Tumble, Stocks Rally on Middle East Peace Hopes
Oil prices slid sharply and global stock markets advanced on Wednesday after reports that the United States had sent a peace plan to Iran, fueling optimism that the nearly four-week conflict could be moving toward de-escalation. With risk appetite improving, the safe-haven U.S. dollar also lost some support.
Still, analysts cautioned that escalation risks remain elevated. The arrival of additional U.S. troops in the Middle East and fresh missile exchanges between Iran and Israel underscored how fragile the situation remains. “Oil prices have moved lower… offering some relief to equities that had been weighed down by worries over inflation,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown, adding that the outlook remains highly fluid and difficult to call.
The economic fallout from the crisis is increasingly being felt worldwide, prompting some governments to consider measures to curb energy consumption. Providing partial relief to certain importers, Tehran said it would allow oil vessels from “non-hostile” nations to transit the crucial Strait of Hormuz, a major chokepoint for global energy flows.
Crude futures plunged more than 6% before trimming losses, with Brent moving back to just below $100 a barrel. The pullback followed comments from President Donald Trump expressing optimism about ending the war and saying officials were “in negotiations right now.”
International Energy Agency (IEA) chief Fatih Birol said he was “ready to move forward” with an additional release of oil reserves “if and when necessary,” signaling policymakers remain on alert for further supply disruptions.
In equities, Wall Street traded cautiously higher in early dealings. The Dow rose about 0.6% to 46,425.14, the S&P 500 gained 0.4%, and the Nasdaq added just under 1%. In Europe, London, Frankfurt and Paris were all up more than 1% with around two hours left in the session, while Asian markets closed strongly higher, led by Tokyo with gains of nearly 3%.
Source : Newsmaker.id
