Oil prices experienced a decline on Wednesday while global stock markets surged, fueled by optimism surrounding potential agreements between the United States and Iran to resume crude oil shipments from the Persian Gulf to customers. The price of Brent crude, the global benchmark, dropped by 7.8% to slightly above $100 per barrel, down from over $115 earlier in the week.
President Donald Trump hinted at a resolution regarding the Strait of Hormuz on social media, suggesting that it could be “OPEN TO ALL” if Iran accepts an undisclosed agreement. The ongoing conflict has disrupted global oil tanker movements through the strait, impacting the flow of oil and contributing to inflationary pressures on various products worldwide.
On Wall Street, the S&P 500 surged by 1.5%, marking its strongest performance in nearly a month and reaching a new all-time high. The Dow Jones Industrial Average rose by 612 points (1.2%), while the Nasdaq composite hit a record high with a 2% increase.
The S&P/TSX composite index in Canada closed up by approximately 1.2% at 33,981.82. Overseas markets also saw substantial gains, with Seoul’s index climbing by 6.5%, Paris by 2.9%, and London by 2.1%.
Despite fluctuations in oil prices, positive signals from Trump and diplomatic discussions between China and Iran have bolstered market sentiment. Notably, Trump’s decision to pause efforts to reopen the Strait of Hormuz and China’s call for a ceasefire following talks with Iran have been perceived as potential steps towards de-escalation.
Large U.S. corporations have reported robust profits for the beginning of 2026, surpassing analysts’ expectations. This positive earnings trend, particularly in the technology sector, has supported market performance amidst geopolitical uncertainties related to the Iran conflict.
Tech companies like AMD and Super Micro Computer saw significant stock gains, driven by strong financial results and demand for artificial intelligence technologies. Chip giant Nvidia also contributed to market growth, rising by 5.7%. Additionally, companies reliant on fuel consumption, such as United Airlines and cruise operators like Carnival and Royal Caribbean, benefited from expectations of lower oil prices.
In the bond market, Treasury yields fell as declining oil prices alleviated inflation concerns. The yield on the 10-year U.S. Treasury decreased to 4.35%, reflecting the market’s response to the evolving economic landscape.