Global stocks rebound as oil slides toward $90 amid shifting outlook for Iran conflict
Stocks in several major Asian markets posted strong gains. Japan’s Nikkei 225 rose 2.9%, while South Korea’s Kospi jumped 5.4%. European markets also moved higher, with Germany’s DAX climbing 2.4%, France’s CAC 40 advancing 1.9%, and the U.K.’s FTSE 100 gaining 1.6%, BNN Bloomberg reported.
Futures trading pointed to a similar recovery in the United States. Dow Jones Industrial Average futures and S&P 500 futures both rose about 0.4%, signaling a positive start for Wall Street after the previous day’s sharp sell-off.
The swings in equities closely tracked dramatic moves in energy markets. Oil prices had surged amid fears that the war involving Iran could disrupt shipments through the Strait of Hormuz, a key artery for global oil transport. But prices later retreated sharply, helping calm markets.
CNBC reported that crude prices dropped significantly after earlier spikes tied to concerns that escalating hostilities could threaten supply routes and energy infrastructure. The reversal in oil prices helped lift stocks globally as investors recalibrated expectations about the conflict’s economic impact.
Despite the market rebound, the energy situation remains volatile. According to CNBC, traders are still closely watching developments in the Middle East as any disruption to oil shipments could quickly push prices higher again.
