Oil prices tumbled and global stock markets surged on Monday after the United States and Iran announced they had reached a framework agreement to end the war a breakthrough that US President Donald Trump said would lead to the reopening of the strategically vital Strait of Hormuz.
Brent crude, the world’s benchmark oil price, dropped more than 5% to $82.84 a barrel, reversing months of volatility driven by the conflict. Before the war began, Brent was trading near $70; at the height of the crisis it soared to around $120. The latest fall reflects investor optimism that energy supplies will stabilise once the strait effectively closed since late February is reopened.
Pakistan, which has been mediating between Washington and Tehran, said a formal signing ceremony is scheduled for 19 June in Switzerland. Iran’s deputy foreign minister Kazem Gharibabadi confirmed on state TV that the deal had been finalised, while President Trump celebrated on social media with the message: “Let the oil flow!”
Still, analysts warned that uncertainty remains. Vandana Hari of Vanda Insights said the lack of detail in the framework “is likely to inject unease and uncertainty into the market,” predicting a potentially turbulent week ahead for oil traders.
Asian markets reacted with enthusiasm. Japan’s Nikkei 225 closed 5% higher, while South Korea’s Kospi jumped 5.2%, offering relief to economies heavily dependent on Middle Eastern oil and LNG. European markets also climbed, with Germany’s Dax up 1.2% and France’s Cac 40 rising 0.7%.
London’s FTSE 100, however, slipped 0.4% as energy giants BP and Shell fell on the back of lower oil prices a reminder that not all sectors benefit equally from easing geopolitical tensions.
The coming days will determine whether the framework deal holds and whether global markets can finally move beyond months of war‑driven instability.
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