Global Markets Rally as Oil Drops Below $100 Mark

Global financial markets witnessed a strong rebound on Wednesday as crude oil prices slipped below the $100-per-barrel mark, fueling optimism among investors about a possible de-escalation in the ongoing Iran conflict.

Investor sentiment improved significantly after U.S. President Donald Trump signaled that American military actions against Iran could conclude within the next two to three weeks. He also indicated that the United States may not remain involved in developments around the strategically vital Strait of Hormuz.

Asian Markets See Strong Gains

Stock markets across Asia recorded sharp gains:

• South Korea’s Kospi surged 8.4%, recovering earlier weekly losses

• Japan’s Nikkei 225 climbed 5.2%, supported by improved business sentiment

• Hong Kong’s Hang Seng rose 2.3%

• China’s Shanghai Composite gained 1.5%

• Australia’s S&P/ASX 200 advanced 2.2%

• Taiwan’s Taiex jumped 4.6%

• India’s Sensex moved up 2.4%

A survey by the Bank of Japan also indicated improving confidence among major manufacturers despite geopolitical tensions.

Oil Prices Decline Amid Easing Concerns

Oil prices dropped sharply as fears of prolonged disruption eased:

• Brent crude fell 4.4% to $99.44 per barrel

• U.S. crude declined 3.8% to $97.55

The decline comes after weeks of volatility triggered by disruptions in the Strait of Hormuz, through which nearly 20% of global oil supply passes.

However, despite the recent dip, the conflict has already pushed U.S. fuel prices above $4 per gallon for the first time since 2022, adding inflationary pressure globally.

Wall Street Posts Strongest Gains in Months

The positive momentum followed a strong session on Wall Street:

• S&P 500 jumped 2.9%

• Dow Jones rose 2.5%

• Nasdaq surged 3.8%

Technology stocks led the rally, with Nvidia gaining 5.6% after announcing a $2 billion investment in Marvell Technology, whose shares soared 12.8%.

In the healthcare sector, Eli Lilly announced the acquisition of Centessa Pharmaceuticals, sending Centessa’s shares up 44%.

Market Outlook Remains Cautiously Optimistic

Analysts believe that while hopes of de-escalation are driving markets higher, the long-term economic impact of the conflict may persist even if tensions ease soon.

“Markets could continue to recover if sentiment improves further,” noted Capital Economics, highlighting that the global economy may still feel aftereffects of the crisis.

Other Market Movements

• Gold prices rose 1.6% to $4,751.80 per ounce

• U.S. dollar weakened slightly against the Japanese yen

• Euro strengthened against the dollar