Global Shares Rise Amid Talks on Iran Conflict

Global markets experienced an uptick on Monday, with a notable decline in oil prices following U.S. President Donald Trump’s announcement of progress in negotiations to end conflict with Iran. European markets showed strength with France’s CAC 40 rising 1.1% to 8,203.32, and Germany’s DAX gaining 1.0% to reach 25,148.39. The FTSE 100 in Britain saw a slight increase of 0.2% to 10,466.26. Trading was not conducted in the U.S. due to the Memorial Day holiday.

In Asia, Japan’s Nikkei 225 surged 2.9%, closing at 65,158.19. Australia’s S&P/ASX 200 increased by 0.4%, ending at 8,692.00. The Shanghai Composite Index of China rose nearly 1% to 4,152.57. Markets were closed in South Korea and Hong Kong in observance of Buddha’s birthday.

Reports indicate the U.S. is nearing an agreement with Iran to end hostilities in the region, reopen the Strait of Hormuz, and ensure Iran disposes of its enriched uranium reserves. These negotiations could significantly impact oil prices, as the strait’s closure has inhibited oil exports from the Persian Gulf. This is particularly vital for countries like Japan, which heavily relies on oil imports through this route.

“Markets are rapidly transitioning from pricing geopolitical fear toward pricing a potential peace dividend as Hormuz reopening expectations pressure oil and the dollar lower,” analyst Stephen Innes commented.

On Friday, the S&P 500 index rose by 0.4%, the Dow Jones Industrial Average increased 0.6%, and the Nasdaq Composite saw a 0.2% gain. Benchmark U.S. crude oil fell $4.77, closing at $91.83 per barrel, while Brent crude dropped by $4.86 to $98.68 per barrel.

Currency trading saw the U.S. dollar weaken against the Japanese yen, moving to 158.95 from 159.16 yen. The euro appreciated slightly, costing $1.1644, compared to $1.1605 previously.

Recent earnings reports surpassing analysts’ predictions have bolstered market positivity, although inflation concerns persist due to the ongoing conflict.