Oil Prices Plunge as Peace Hopes Lift Global Stocks

Global oil prices fell sharply on Wednesday, while stock markets surged as optimism grew over a possible easing of tensions in the Iran conflict.

Reports citing US officials suggest Washington is close to an understanding with Tehran that could reopen the Strait of Hormuz and lay the groundwork for ending the crisis. The draft framework is said to include Iran pausing nuclear enrichment and the potential release of frozen Iranian assets, although no final agreement has been confirmed.

Following the reports, Brent crude dropped nearly 11 percent, falling below $100 per barrel. West Texas Intermediate declined more than 12 percent, slipping under $90. European natural gas prices also eased by around 11 percent.

The softer energy outlook boosted global equities. London’s FTSE 100 rose about 2.3 percent, while markets in Paris and Frankfurt gained close to 3 percent.

Analysts said improving risk sentiment drove the rally, as expectations of a possible de-escalation reduced concerns over energy supply disruptions and inflation pressures. Bond yields eased and the US dollar weakened as investors moved toward riskier assets.

In Asia, South Korea’s benchmark index jumped more than 5 percent, powered by a sharp rally in Samsung shares after strong demand for AI chips pushed its market value above $1 trillion.

The Japanese yen also strengthened against the US dollar, with traders pointing to suspected intervention by authorities to stabilize the currency.