Oil Prices Plunge and Stocks Soar on Hopes for Iran Deal

Oil prices fell sharply and global stocks jumped on Monday as investors cheered the prospects of a ceasefire deal between the U.S. and Iran.

The deal would reportedly reopen the Strait of Hormuz, the waterway stretching between Oman and Iran that separates the Persian Gulf from the Gulf of Oman and the Indian Ocean beyond. Prior to the war, nearly a quarter of the world’s international seaborne oil traded passed through the strait.

The price of Brent Crude in the futures market for August delivery, the international benchmark, fell to around $94.50 a barrel before edging back up to $98. West Texas Intermediate crude, the U.S. benchmark, fell to just over $91 a barrel in contracts for July delivery. Both represent more than a five percent drop from the previous trading day.

While stock markets in the U.S. were closed for the Memorial Day holiday, stocks rallied around the world.