Global stock markets surged as oil prices plummeted on Wednesday amid optimism over potential resolutions between the United States and Iran, sparking hopes of resumed oil shipments from the Persian Gulf. The price of Brent crude oil dropped by 7.8% to slightly above $100 per barrel, a significant decrease from over $115 earlier in the week.
President Donald Trump’s social media comments suggested a possible reopening of the Strait of Hormuz if Iran agrees to an undisclosed reported deal, potentially easing the ongoing oil tanker blockade caused by the conflict. This development could alleviate inflationary pressures on global product prices.
On Wall Street, the S&P 500 soared by 1.5%, reaching a new high, while the Dow Jones Industrial Average surged by 1.2% and the Nasdaq composite hit a record high with a 2% increase. Canada’s S&P/TSX composite index climbed by approximately 1.2%.
International markets experienced even more significant gains, with Seoul jumping by 6.5%, Paris by 2.9%, and London by 2.1%.
Although oil prices partially rebounded from their early losses, Trump’s threats of heightened military action if Iran rejects the agreement caused fluctuations. Despite uncertainties surrounding the conflict, robust profits from major U.S. corporations in 2026 have supported market resilience.
Tech companies like AMD and Super Micro Computer posted strong earnings, driving market optimism. AMD’s shares surged by 18.6% due to AI technology growth, while Super Micro Computer’s stock rose by 24.5%. Nvidia, a prominent chip company in the AI sector, climbed by 5.7%.
Companies reliant on fuel prices, such as United Airlines, Carnival, and Royal Caribbean, also saw gains on expectations of continued oil price relief. In the bond market, Treasury yields decreased as oil price declines alleviated inflation concerns, with the 10-year U.S. Treasury yield dropping to 4.35% from 4.43%.
Overall, the market outlook remains positive amidst hopes for diplomatic resolutions and strong corporate performance.