Oil prices experienced a decline on Wednesday while global stock markets surged on optimism surrounding a potential agreement between the United States and Iran to reopen the Strait of Hormuz for oil shipments. The price of Brent crude oil dropped by 7.8% to slightly above $100 per barrel, a decrease from over $115 per barrel earlier in the week.
The anticipation stemmed from U.S. President Donald Trump’s social media statement suggesting that the Strait of Hormuz might be accessible to all if Iran accepts an undisclosed reported deal. The ongoing closure of the strait due to the conflict with Iran has disrupted global oil transport, impacting inflation and prices of various goods worldwide.
On Wall Street, the S&P 500 recorded a 1.5% gain, reaching a new high, while the Dow Jones Industrial Average surged by 612 points (1.2%), and the Nasdaq composite hit a record high with a 2% increase. Moreover, Canada’s S&P/TSX composite index closed up approximately 1.2%.
Overseas markets also saw significant gains, with Seoul rising by 6.5%, Paris by 2.9%, and London by 2.1%. Despite fluctuations in oil prices during the day, positive signals emerged, such as Trump’s decision to halt efforts to forcibly reopen the strait and China’s call for a comprehensive ceasefire after discussions with Iran.
Amid uncertainties surrounding the conflict, major U.S. companies reported stronger-than-expected profits for the beginning of 2026, supporting the stock market performance. Notably, chip company AMD saw a notable surge of 18.6% following robust earnings results, while other firms in the artificial intelligence sector, including Super Micro Computer and Nvidia, also experienced positive rallies.
Additionally, companies reliant on fuel costs, such as United Airlines, Carnival, and Royal Caribbean, witnessed gains as hopes for easing oil prices prevailed. In the bond market, Treasury yields declined as oil price drops alleviated inflation concerns, with the 10-year U.S. Treasury yield falling to 4.35% from 4.43% the previous day.
