Oil prices fell and global stock markets rallied on Wednesday following reports that the United States and Iran are close to reaching an agreement to end their ongoing conflict.
Brent crude futures, the global benchmark, dropped to $97 per barrel before recovering slightly, after trading above $108 earlier in the day. The decline reflects growing optimism about a potential diplomatic resolution.
Major European indices posted strong gains: London's FTSE 100 and Germany's DAX both rose over 2% in midday trading, while France's CAC 40 climbed 3%. Asian markets also closed higher, with South Korea's Kospi surging 6.45% and Hong Kong's Hang Seng gaining 1.22%.
The market moves were triggered by a report from Axios, citing U.S. officials, that Washington believes it is close to finalizing a one-page document that would end hostilities and pave the way for broader nuclear negotiations.
Oil prices remain significantly elevated compared to pre-war levels of around $70 per barrel. The conflict, which began with U.S.-Israeli strikes on February 28, has severely disrupted oil production and transportation in the region.
A key flashpoint has been Iran's threat to attack oil tankers passing through the Strait of Hormuz, a narrow waterway through which about one-fifth of global oil and gas shipments normally transit. The strait has been effectively closed for weeks, sending energy prices soaring.
On April 8, the U.S. and Iran agreed to a ceasefire, which briefly lowered oil prices and boosted markets. However, tensions flared again on Sunday when President Donald Trump announced "Project Freedom," a U.S. military operation to guide ships through the strait, prompting renewed attacks from both sides.
Trump later said on social media Tuesday that he would pause the operation "for a short period of time to see whether or not the Agreement can be finalized and signed." He claimed "Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran."
According to Axios, the proposed memorandum of understanding would declare an end to the war and initiate a 30-day negotiation period focused on reopening the strait, limiting Iran's nuclear program, and lifting U.S. sanctions. The U.S. is reportedly awaiting Iran's response on key points within 48 hours.
U.S. Secretary of State Marco Rubio told reporters Tuesday that the initial U.S.-Israeli offensive against Iran was over, as Washington's objectives had been met. "We would prefer the path of peace. What the president would prefer is a deal," Rubio said.
Iran has not yet responded to Rubio's remarks. However, Iranian parliamentary speaker Mohammad Ghalibaf earlier stated: "We know well that the continuation of the status quo is intolerable for America, while we are just getting started."
Source: www.bbc.com