Global financial markets advanced on Monday after President Donald Trump signalled openness to resuming talks with Iran, boosting investor expectations that a potential diplomatic breakthrough could ease tensions in the Middle East.
The development triggered gains across equity markets, with the MSCI All Country World Index rising 0.4 percent and heading for an eighth consecutive day of gains — its longest winning streak since September.
Asian markets led the rally, with the regional benchmark climbing 1.7 percent, driven largely by strong performance in technology stocks. Analysts attributed the gains to optimism that easing geopolitical tensions could lower energy costs and support global economic growth.
European shares were also poised for a stronger opening, reflecting broad-based investor confidence across major markets.
In the commodities market, crude oil prices declined sharply. Brent crude fell 1.5 percent to $97.90 per barrel, as traders reacted to signals that Washington and Tehran may restart negotiations despite heightened tensions linked to developments around the Strait of Hormuz.
The potential for diplomatic progress eased concerns about supply disruptions in the oil market, which has been sensitive to geopolitical risks in the region.
Currency markets also reflected the shift in sentiment, with the U.S. dollar weakening against most major Group-of-10 currencies. Meanwhile, U.S. Treasury yields edged lower as falling oil prices reduced inflation expectations among investors.
Market analysts say the combination of easing geopolitical risk and lower energy prices is providing a short-term boost to risk assets, though uncertainty remains over the durability of any potential US–Iran diplomatic engagement.
