Oil Prices Plunge, Stocks Rally Worldwide
Brent crude dropped 4.8% as investors bet the accord could ease inflation and lift airlines, technology stocks and other risk assets.
- The United States and Iran announced an agreement on Monday to reopen the Strait of Hormuz, aiming to end a conflict that has rattled energy markets and fuelled inflation worldwide.
- Investor sentiment improved significantly after Brent Oil prices dropped 4.8% to $83.14 a barrel, a steep decline from levels above $100 recorded only weeks ago.
- On Wall Street, the Dow Jones Industrial Average gained more than 700 points, or 1.4%, while the Nasdaq Composite jumped 3% as Technology stocks rallied strongly.
- Shares of companies exposed to fuel costs surged, with United Airlines rising 4.7%, American Airlines gaining 3.3%, and Carnival advancing 3.6%, while Bond markets reflected optimism as Treasury yields edged lower.
- Japan's Nikkei surged 5% to a record high, while Iran confirmed implementation of the agreement depends on formal signing in Switzerland on Friday.
61 Articles
61 Articles
Gas prices climb as Iran deal looms, and 4 other major stories
Gas prices have climbed in Michigan after news of a potential deal between the U.S. and Iran to end the ongoing war. The rise in prices is one of five must-read stories to kick off your morning on Tuesday, June 16.
The euphoria about the agreement between Iran and the USA is passing. On Wall Street it was still enough for a record high. Now, however, investors focus on the question of how resilient the agreement is.
STOCK MARKET: Oil tumbles on US-Iran deal framework: How one trader is playing the move
Washington and Tehran appear to have a deal. Critically, the framework being discussed would release Iranian funds, allow the Strait of Hormuz to be reopened, enable Iran to sell oil freely, and begin nuclear negotiations. The news is causing oil prices to fall to their lowest levels since April, which is good news for airline investors. The equation is simple: more oil through the Strait means more supply, and more supply will ease jet fuel pri…
The US and Iran agree on peace agreements. The street of Hormus opens again. Markets celebrate, oil crashes. But the deal has hooks – and they could be expensive.
Oil price volatility still expected after Monday tumble in wake of tentative deal between U.S., Iran
Oil prices eased on Monday after U.S. and Iranian officials said they agreed to the framework of a peace deal. But experts are still skeptical of when prices will drop even further to the levels seen in February, and note volatility could still be seen until a deal is officially announced.
Oil prices plunge, stocks rally worldwide
Oil prices fell sharply, while global stock markets surged on Monday after the United States and Iran announced an agreement to reopen the Strait of Hormuz, raising hopes of a lasting end to a conflict that has rattled energy markets and fuelled inflation worldwide. The world markets welcomed the prospect of reduced geopolitical tensions despite lingering uncertainty. Investor sentiment particularly improved significantly after Brent crude oil p…
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