Oil prices drop and stock markets rise after reports of deal to end Iran war
BBC • • nation
Key Points:
- Oil prices fell sharply from over $108 to around $97 a barrel following reports that the US and Iran are close to a deal to end the ongoing conflict, though prices remain above pre-war levels near $70.
- Major global stock markets, including London's FTSE 100, Germany's Dax, and France's Cac 40, rose between 2-3%, with Asian markets also closing higher amid optimism about a potential ceasefire agreement.
- The conflict has centered on Iran's threats to attack oil shipments through the strategically vital Strait of Hormuz, which has been effectively closed for weeks, disrupting about 20% of global oil and gas shipments and driving prices up.
- Axios reported that the US is nearing a one-page memorandum of understanding with Iran that would declare an end to the war and initiate 30 days of negotiations on reopening the strait, limiting Iran's nuclear program, and lifting sanctions.
- US officials, including Secretary of State Marco Rubio, indicated that US objectives have been met and expressed preference for a peaceful deal, while Iran has yet to respond publicly to these developments.
