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.
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69 Articles
Brent Oil Falls Below $80 With US-Iran Deal Set to Add Supply
Peso, stocks rally on Middle East deal
MANILA, Philippines – Local stocks staged a sharp rally while the peso climbed to its strongest level in more than a month on Monday as investors welcomed news of a peace agreement between the United States and Iran, fueling hopes of lower oil prices and easing inflationary pressures. The benchmark Philippine Stock Exchange Index (PSEi) jumped
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.
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