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Global financial markets experienced a strong upward surge at the start of the week’s trading, after US President Donald Trump announced an agreement to end the conflict between the United States and Iran, which boosted investors’ appetite for risk and pushed stocks to rise significantly.
S&P 500 futures rose 1.2%, while Dow Jones futures added about 440 points, or 1%. Nasdaq 100 futures were the biggest gainers, posting nearly 2% gains, supported by technology and artificial intelligence stocks.
The wave of optimism extended to Asian markets, with South Korea’s Kospi index jumping 5.6%, Japan’s Nikkei 225 index rising by about 5%, and the Kosdaq index for small companies recording gains of 0.8%.
Oil prices fall after the reopening of the Strait of Hormuz
In another development, Trump announced via social media that the agreement with Iran was “complete” and authorized the reopening of the Strait of Hormuz , one of the world’s most important maritime energy shipping lanes. The announcement led to a sharp drop in oil prices, with US crude falling by about 5% after traders largely dismissed concerns about supply disruptions, which had contributed to rising energy prices and increased inflationary pressures in recent months.
Analysts believe that lower oil prices could ease pressure on consumers, businesses, and central banks, and may reduce the need for tighter monetary policies and a strong pace of interest rate hikes.
The official signing is still the final hurdle.
Despite the prevailing optimism in the markets, the agreement has not yet officially entered into force. According to Pakistani officials, the formal signing is scheduled for next Friday in Switzerland. Observers note that the period between the announcement and the signing remains susceptible to political surprises or last-minute disagreements, which could lead to a cautious approach from investors in the coming days.
However, positive sentiment continues to prevail in the markets. The S&P 500 ended last week up 0.7%, posting gains in 10 of the last 11 weeks, bringing its year-to-date gains to 8.6%.
The Nasdaq index has also made gains in 9 of the last 11 weeks, bringing its year-to-date returns to 11.4%, supported by the strong performance of technology and artificial intelligence stocks.
