Key Moments
- WTI crude fell almost 6% to roughly $80 per barrel, while Brent crude slipped around 5% to about $83 per barrel.
- Global equity benchmarks in Europe, Asia, and US futures traded higher as investors responded to progress on a US-Iran peace agreement.
- The newly announced peace deal is expected to be signed on Friday, with both sides stating that blockades of the Strait of Hormuz will be lifted.
Energy Markets React to US-Iran Breakthrough
Crude oil prices moved sharply lower on Monday after US President Donald Trump confirmed that a peace agreement with Iran had been reached and both sides announced plans to lift their respective blockades of the Strait of Hormuz.
At the time of writing, the front month contract for US West Texas Intermediate (WTI) crude was down almost 6% from Friday’s close, trading at roughly $80 per barrel. Brent crude, the main international benchmark, declined around 5% to about $83 per barrel.
Specific details of the concessions agreed by each side have not yet been fully disclosed. Questions also remain over whether the Prime Minister of Israel will accept a withdrawal of troops from southern Lebanon, which, according to the Prime Minister of Pakistan, is part of the agreement.
Benjamin Netanyahu has not yet made a public statement on the US-Iran deal or on Lebanon. CNN has reported that the Prime Minister of Israel is seeking an urgent meeting with US President Donald Trump after this week’s G7 summit.
Despite lingering uncertainties, markets are quickly responding to the prospect that the Strait of Hormuz could gradually reopen and that the Iran war might be moving closer to a resolution rather than a further escalation. The newly announced peace accord is currently anticipated to be formally signed on Friday.
Global Equity Markets Welcome De-escalation Hopes
European stocks advanced at Monday’s open as investors reacted to signs of meaningful progress toward ending the Iran war.
The Euro Stoxx 50 and the broader pan-European Stoxx 600 both traded more than 1% higher at the start of the session. Major national benchmarks across the region also moved up between 0.5% and 1% compared with Friday’s close, including the UK’s FTSE 100, Germany’s DAX 30, Italy’s FTSE MIB, Spain’s IBEX 35, the Netherlands’ AEX, and Switzerland’s CH20. France’s CAC 40 outperformed, climbing nearly 1.5%.
In the US, equity futures indicated a strong positive open. S&P500 futures traded more than 2% higher, while futures on the tech-focused Nasdaq 100 rose more than 3%.
Asia-Pacific Indices Rebound Strongly
Asia-Pacific markets rallied overnight on Monday, extending the global risk-on tone.
South Korea’s Kospi surged over 5%, reversing a 4% drop recorded on Friday. Japan’s Nikkei 225 also traded roughly 3% higher.
Elsewhere in the region, Australia’s S&P/ASX 200 added 0.8%. Hong Kong’s Hang Seng Index advanced about 0.5%, and Shanghai’s SSE gained more than 1.5%.
Market Moves at a Glance
| Asset / Index | Move | Additional Detail |
|---|---|---|
| WTI crude (front month) | Down almost 6% | Roughly $80 per barrel |
| Brent crude | Down around 5% | About $83 per barrel |
| Euro Stoxx 50 | Over 1% higher | At Monday’s open |
| Stoxx 600 | Over 1% higher | Pan-European benchmark |
| FTSE 100, DAX 30, FTSE MIB, IBEX 35, AEX, CH20 | Between 0.5% and 1% higher | Versus Friday close |
| CAC 40 | Almost 1.5% higher | Leading major European index |
| S&P500 futures | Over 2% higher | US pre-market trading |
| Nasdaq 100 futures | More than 3% higher | Tech-heavy index |
| Kospi | Over 5% higher | Recovering from a 4% drop on Friday |
| Nikkei 225 | Roughly 3% higher | Japan |
| S&P/ASX 200 | Up 0.8% | Australia |
| Hang Seng Index | Up about 0.5% | Hong Kong |
| SSE | Over 1.5% higher | Shanghai |
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