Global Stock Markets Jump After Reports of U.S.-Iran Agreement

S&P 500 futures rose 1.2%, while Dow Jones Industrial Average futures gained 1%. Analysts said this points to a possible rise in the U.S. market at the start of trading.

In Europe, Germany’s DAX gained 1.7%, reaching 25,066.48 points. France’s CAC 40 also rose 1.7% to 8,410.36 points. Britain’s FTSE 100 climbed 0.8% to 10,553.18 points.

After several “false starts,” investors are hoping that this time the conflict may indeed be over, AP notes.

On the oil market, by contrast, prices fell sharply. Brent dropped $4.08 to $83.25 a barrel. U.S. WTI fell $4.51 to $80.37 a barrel.

Experts warn that stabilizing oil markets after the sharp swings caused by the conflict could take months. According to them, shipping and insurance companies will wait for confirmation that the agreement is durable before fully restoring supplies.

“The opening of the Strait of Hormuz is a safety valve, not a full peace dividend. The market may remove some of the oil panic, but it still has to price in the difference between an announcement, a signing and actual compliance with the regime,” said Stephen Innes of SPI Asset Management.

Strong gains were also seen in Asia. Japan’s Nikkei 225 rose 5% to 69,317.50 points, setting a new all-time high.

The technology sector gained the most, especially companies linked to artificial intelligence.

South Korea’s Kospi climbed 5.2% to 8,545.98 points. In Hong Kong, the Hang Seng rose 0.6% to 24,864.13 points, while the Shanghai Composite gained 1.6% to 4,096.47 points. Australia’s S&P/ASX 200 added 1.3% to 8,922.90 points, Taiwan’s Taiex gained 2.8%, and India’s Sensex rose 1.2%.