Gotrade News - Global equities rallied and Brent crude dropped below USD 100 a barrel on rising Iran peace deal hopes. The Stoxx 600 climbed 1% to its highest level since early March as risk appetite returned.
Investors priced in a possible diplomatic breakthrough that could ease Middle East supply risks across energy markets. The relief rally pulled crude lower while supporting equity index futures across major developed markets.
Key Takeaways
- Stoxx 600 hit a multi-month high as risk appetite returned to global equities.
- Brent crude slid below USD 100 for the first time since late February.
- US index futures jumped, with Nasdaq 100 contracts leading at +1.2%.
Equity Markets Rally On Diplomatic Progress
According to Investing.com, Dow futures gained 426 points, or roughly 0.8%, in early trade. S&P 500 futures advanced 67 points, while Nasdaq 100 futures led with a 1.2% jump.
European markets opened firmly higher as investors rotated back into cyclical and growth-sensitive sectors. Germany's DAX climbed 1.4% while France's CAC 40 surged 1.8% on the diplomatic news flow.
Trading volumes were thin due to public holidays in the United States and the United Kingdom. Canadian TSX futures still managed a 1.1% advance, rising 22 points by 07:14 ET.
As reported by Investing.com, gold also climbed alongside equities as traders rebalanced safe-haven exposure. The dual move reflected lingering caution despite the constructive headlines.
Broad index trackers including the SPDR S&P 500 ETF (SPY) drew renewed interest from risk-on positioning. The reaction underscored how heavily Middle East risk had weighed on sentiment.
Oil Slides As Supply Risk Fades
Brent crude tumbled roughly 6%, slipping below the psychologically important USD 100 per barrel mark. Per Investing.com, the benchmark dropped 5.7% to USD 94.50 a barrel.
It was the first time the contract traded under USD 100 since the conflict erupted in late February. The Strait of Hormuz, which handles around one-fifth of global oil flows, remained the central supply concern for traders.
Energy majors weakened sharply across Europe, with Eni, Repsol, and TotalEnergies all retreating. US-listed oil producers including Exxon Mobil (XOM) and Chevron (CVX) faced similar pressure in premarket trade.
President Trump told representatives not to rush into a deal, signaling a measured negotiating posture. He confirmed the American blockade on Iranian ports would remain until any agreement was reached, certified, and signed.
Secretary of State Marco Rubio said Washington would pursue diplomatic channels but warned of unspecified alternatives. The Iranian foreign ministry spokesperson confirmed a framework was reached, while disputing claims of imminent completion.
The US-Israeli assault on Iran launched late February had kept crude well above USD 100 for months. Any durable resolution could meaningfully reset the global energy cost curve for the second half.
