Global energy and stock markets are once again experiencing a turnaround as officials confirmed that the US and Iran are close to a potential peace deal that is likely to end the conflict.
Brent crude futures, the global benchmark oil price, fell $10.07 (9.2%) to $99.80 a barrel by 1042 GMT on reports of an end to the months-long war in the Gulf.
While US West Texas Intermediate (WTI) fell $10.79 (10.6%) to $91.48.
Both benchmarks are currently tracking their steepest one-day dollar losses in over a month. The fall marks a two-week low in oil prices.
Talking about global trading markets, stocks were seen on a high as the London-based FTSE 100 index jumped more than 2 percent in early trade. Similarly, the Germany-based DAX and the French CAC 40 rose 3 percent each. The US-based S&P gained just less than 1 percent.
Asian markets also joined the global rally on Wednesday. South Korean Kospi showed a positive performance with a strong gain of 6.45 percent at the close. Hong Kong’s Hang Sen and Japan’s Nikkei rose 1.22 percent and 0.38 percent, respectively.
The dramatic changes seen in the markets are only due to the expectation that Iran and the US will soon reach a peace deal to end the conflict, which has roiled global energy markets due to the continued closure of the Strait of Hormuz.
The United States and Iran are moving closer to a formal agreement on a one-page memorandum aimed at ending the months-long war, Reuters reports.
The first report related to ending the conflict between America and Iran was published Axios. Later a Pakistani source confirmed the authenticity of these claims.
“We will close it soon. We are getting closer to it,” the Pakistani source said.
