Global equities climbed while oil prices declined after renewed diplomatic efforts by the United States raised cautious optimism that tensions in the Middle East may begin to ease.
Benchmark Brent crude fell 3.9 percent to $100.37 per barrel, supporting a 1.8 percent rise in Asian equities and gains in sovereign bonds. The drop in oil prices helped ease inflation concerns and reduced expectations of further monetary policy tightening.
Earlier in the session, Brent crude dipped as low as $97.15, while Asian shares surged up to 2.4 percent before some of the optimism faded as European markets prepared to open. Futures tied to US equity indexes advanced, while contracts signaled about a 1 percent gain for European stocks at the open.
Investor sentiment was buoyed by reports of a 15-point plan by the United States aimed at bringing an end to the conflict involving Iran. Additionally, Channel 12 reported that Washington is pushing for a one-month ceasefire, further supporting market confidence.
Despite the improving outlook, market participants remained cautious, with attention focused on the Strait of Hormuz, a critical channel for global oil shipments that remains effectively closed to vessels. The continued disruption in this key artery underscores lingering risks to global energy supply.
While diplomatic developments have sparked optimism, analysts note that sustained market stability will depend on concrete progress toward de-escalation in the region.
