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Stocks Rally and Oil Slides on Hopes of U.S.-Iran Truce

Markets are pricing relief from the oil shock on signs Washington and Tehran may pause the war.

Overview

  • Asian shares, which hit fresh records Thursday, climbed after reports said Iran is reviewing a U.S. proposal for a limited agreement to halt fighting.
  • Oil benchmarks sank roughly 7–9% Wednesday on deal hopes, with Brent hovering near $100 a barrel as traders weighed the prospect of tankers returning to the Strait of Hormuz.
  • U.S. futures hovered near all-time highs and Europe steadied after a sharp jump, helped by strong technology and AI earnings that have amplified the risk-on tone.
  • India’s Sensex jumped about 941 points Wednesday as crude fell, then traded choppily Thursday with continued foreign investor outflows keeping sentiment cautious.
  • The draft framework leaves core issues unresolved, including reopening the strait and nuclear demands, and analysts warn flows could normalize slowly given damaged infrastructure and stockpiling.