Global stocks rise, oil prices drop on US-Iran peace deal announcement

Stock markets across the world rose sharply on Monday while oil prices fell after a deal was announced between the United States and Iran aimed at ending the tensions in West Asia and reopening the Strait of Hormuz.

On Sunday, US President Donald Trump said the peace deal with Iran “is now complete”. Iran’s Deputy Foreign Minister Kazem Gharibabadi also confirmed in a phone call on state television that a deal had been finalised, BBC reported.

Pakistani Prime Minister Shehbaz Sharif said the agreement will be signed in Switzerland on Friday.

In the backdrop of these announcements, the benchmark Brent crude fell below $83.4 per barrel on Monday, Al Jazeera reported. The price of Brent was $78 per barrel on February 27, a day before the conflict started. The price had reached as high as $114 per barrel on May 4.

Japan’s Nikkei 225 index was up by 4.9% at 11 am, while South Korea’s Kospi rose more than 5.2%.

Taiwan’s Taiex gained as much as 2.6%, and Australia’s ASX 200 rose around 1.3%. Hong Kong’s Hang Seng Index also rose before giving up most gains as of 11 am.

Indian benchmark indices also opened higher on Monday morning, with the Nifty reclaiming the 24,000 mark.

At 11 am, the benchmark Sensex gained 1.7% and was at 76,812 points and Nifty...

Read more