Oil Prices Drop, Global Stocks Surge Amid Peace Hopes
Global stock markets saw oil prices drop, and stock indices soar on Saturday as investors relaxed post US-Iran ceasefire, easing immediate concerns over energy supply stability. Market data indicated a sharp correction in the commodities sector alongside a robust rally across major equity benchmarks.
Brent Crude recorded a significant decline of 7.57 per cent to settle at USD 91.87 per barrel, a marked retreat from its previous close of USD 99.39. The commodity saw an intraday low of USD 86.08, moving further away from its 52-week high of USD 114.81.
Similarly, West Texas Intermediate (WTI) crude oil fell by 9.63 per cent, dropping by USD 9.12 to reach USD 85.57. Gold prices moved contrary to the energy trend, gaining 0.94 per cent to reach USD 4,833.56.
The US equity markets responded to the geopolitical shift with broad gains. The Dow Jones Industrial Average rose 868.71 points, or 1.79 per cent, to close at 49,447.43.
The S&P 500 increased by 1.20 per cent to finish at 7,126.06, while the Nasdaq Composite advanced 1.52 per cent to reach 24,468.48.
The upward movement in Western markets followed a more subdued session in the Asian markets. Japan’s Nikkei 225 fell 1,042.44 points, a 1.78 per cent decrease, to finish at 58,475.90. Hong Kong’s Hang Seng Index and the Taiwan Weighted Index both recorded losses of 0.89 per cent. South Korea’s KOSPI also declined by 0.55 per cent to settle at 6,191.92.
Other regional markets showed mixed results during the Friday session. The Jakarta Composite Index gained 0.17 per cent to reach 7,634.00, though it remained down 12.74 per cent on a year-to-date basis. The Shanghai Composite experienced a marginal decline of 0.10 per cent to close at 4,051.43, while Singapore’s Straits Times Index and the SET Composite in Thailand recorded fractional losses of 0.20 per cent and 0.49 per cent, respectively.
The sharp slump in oil prices and gain in stock indices come after the Iranian side had earlier accepted US President Donald Trump’s peace overture and agreed to safe passage via the Strait of Hormuz for two weeks, as well as a pause in military operations.
The two-week pause is likely to lead to further comprehensive negotiations between the US and Iran and a possible peace summit in Islamabad.
Trump on Friday (local time) expressed optimism about ongoing negotiations with Iran, saying discussions are set to continue through the weekend as efforts intensify toward a potential agreement.
Speaking to reporters after landing in Phoenix for a Turning Point USA event, Trump indicated that the talks were progressing positively, though he stopped short of confirming a breakthrough.
“We’ve had some very good discussions … and we’ve done a good job, but we’ll see. Talks are going on, and we’ll go on over the weekend,” Trump said.
“A lot of good things are happening, and that includes Lebanon, too,” he added. (ANI)
