Global markets rallied as hopes grew that the ongoing conflict involving Iran could soon de-escalate, while oil prices declined.
Investor confidence improved after Iran’s president, Masoud Pezeshkian, indicated that the country is willing to end the war with the United States and Israel, provided certain assurances are met, including guarantees against future attacks.
His statement sparked a strong rebound on Wall Street, with the Dow Jones Industrial Average rising by 2.5 percent, gaining over 1,125 points to close at 46,341.51.
“This is the first concrete communication coming from Iran that feels verifiable,” said Art Hogan of B. Riley Wealth Management. “The market has been waiting for positive news after several weeks of decline.”
Despite the positive sentiment, Benjamin Netanyahu maintained that Israel’s military campaign against Tehran is ongoing, reiterating his stance on dismantling Iran’s leadership.
The shift in tone from Iran also influenced oil markets, which have remained volatile since the conflict began. Brent crude dropped by 3.2 percent to $103.97 per barrel, while West Texas Intermediate fell 1.5 percent to $101.38.
Earlier market gains were also supported by reports that Donald Trump is open to ending the conflict even if the Strait of Hormuz remains closed.
However, concerns about global energy supply remain. Analysts warn that Asian economies may be hit hardest, as elevated oil prices continue to weigh on growth.
“We think Asia will, for now, be the ones suffering the most,” said Jean Maynier, president of maritime analytics firm Kpler.
Rising energy costs are also impacting consumers globally. In the United States, average fuel prices have surpassed $4 per gallon for the first time since 2022, adding pressure on policymakers.
European markets also ended higher despite new data showing increased inflation across the eurozone, largely driven by rising energy costs. Inflation climbed to 2.5 percent from 1.9 percent the previous month.
Meanwhile, Asian markets showed mixed performance, reflecting continued uncertainty.
Key market figures:
- Brent crude: down 3.2 percent at $103.97 per barrel
- West Texas Intermediate: down 1.5 percent at $101.38 per barrel
- Dow Jones: up 2.5 percent at 46,341.51
- S&P 500: up 2.9 percent at 6,528.52
- Nasdaq Composite: up 3.8 percent at 21,590.63
- FTSE 100: up 0.5 percent at 10,176.45
- CAC 40: up 0.6 percent at 7,816.94
- DAX: up 0.5 percent at 22,680.04
- Nikkei 225: down 1.6 percent at 51,063.72
- Hang Seng: up 0.2 percent at 24,788.14
- Shanghai Composite: down 0.8 percent at 3,891.86
- Euro/dollar: $1.1551
- Pound/dollar: $1.3236
- Dollar/yen: 158.77