- Markets rise as oil falls on Iran’s peace hopes.
- Oil falls boost stocks as US-Iran talks progress.
- Global markets are rising as oil eases on hopes of a ceasefire.
Oil prices fell sharply on Wednesday as hopes grew of a possible deal between the United States and Iran to end the war in the Middle East, easing concerns over supply disruptions on key global shipping routes.
U.S. crude fell $5.89 to $98.26 a barrel, while Brent fell $6.26 to $105.02 as markets reacted to signs of progress in talks between Washington and Tehran.
US President Donald Trump said talks with Iran were in their final stages, while warning of further strikes if no deal is reached. He also said the United States was prepared to wait a few days for the “right answer” from Tehran.
The drop in oil helped ease broader inflation fears, pushing U.S. Treasury yields down as investors moved into Treasuries. The benchmark 10-year yield fell 9.4 basis points to 4.576%.
The US dollar also fell from a six-week high.
There were preliminary signs of easing pressure in the Gulf, with shipping data showing two Chinese oil tankers leaving the Strait of Hormuz.
Wall Street advanced as lower oil prices and falling interest rates lifted sentiment ahead of stronger technology earnings.
Nvidia is due to report results after the market close with expectations of a sharp increase in revenue driven by continued demand for artificial intelligence chips.
Chip stocks rose ahead of the results, which helped push semiconductor shares higher.
Global shares also rose, with European markets and a broad global index showing gains as risk appetite improved.
In bond markets, European and Japanese long-term yields also fell from recent highs, mirroring the US move.
Germany’s 10-year yield fell slightly from a 15-year high.
In currency markets, the US dollar index fell while the euro strengthened and the yen also gained ground against the dollar.
Gold rose more than 1%, supported by weaker interest rates and softer dollar demand.
