Stock prices rose and oil prices fell more than four dollars per barrel today after the announcement of a framework agreement to end the Iran war and reopen the Strait of Hormuz.
In early trading this morning, the price of Brent crude, the international standard, fell by $4,08 to $83,25 per barrel, while the price of benchmark U.S. crude fell by $4,51 to $80,37 per barrel.
It could take months for oil prices to stabilize after the disruptions caused by the war sent them soaring, pushing up the prices of gasoline and many other commodities. Energy experts say insurers will want to be confident that the deal will hold and that oil and gas will be able to flow freely to meet the world's needs. Still, the news was a huge relief for markets that have been in turmoil since the conflict began in February.
S&P futures rose 1,2 percent and the Dow Jones Industrial Average rose 1 percent, signaling early gains on Wall Street.
In early European trading, Germany's DAX rose 1,7 percent, while Paris' CAC rose 1,7 percent. Britain's FTSE gained 0,8 percent.
Stocks also rose in Asia, with Tokyo's Nikkei up 5 percent and Seoul's Kospi up 5,2 percent. Hong Kong's Hang Seng rose 0,6 percent and the Shanghai Composite Index was up 1,6 percent.
After several false announcements, investors are now counting on the war actually being over. US President Donald Trump confirmed that a framework agreement had been reached and authorized the lifting of the US naval blockade of Iranian ports.
Iran also confirmed the deal but said its implementation would not begin until it was signed, and Pakistan, which is acting as a mediator, said the signing would take place on Friday in Switzerland. Broader talks on issues such as Iran's nuclear program are expected to continue for the next 60 days.
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