Global Stocks Rise as Iran De-escalation Hopes Drive Market Shift and Lower Oil Prices

Global markets extended a risk-on move as investors responded to signs that the conflict in Iran may be moving toward de-escalation. Asian equities were set for a second straight day of gains after a Wall Street rally, with traders rotating back into stocks on expectations that an end to the war would support global crude flows and reduce energy-price pressure.

In Wednesday’s session, US benchmarks advanced, led by technology shares. The S&P 500 rose 0.7% and the Nasdaq 100 added 1.2%, and both indexes reached their highest levels of the week. The tone carried into Asia, where futures for major indexes in Japan, Hong Kong, and South Korea indicated a higher open.

Commodities reflected the same shift in sentiment. West Texas Intermediate crude fell more than 1% to trade below $99 a barrel, marking a third consecutive session of declines as investors weighed the possibility of improved crude flows if tensions continue to cool. Gold prices moved higher even as risk appetite improved, underscoring that some investors continued to seek hedges alongside equity exposure.

In currency markets, the dollar index edged down 0.1%. The move in the dollar came as traders assessed a mix of macro signals and cross-asset positioning, with the broader market focus still centered on how geopolitical developments could influence energy costs and, by extension, inflation-sensitive assets.

US government bonds traded unevenly following solid readings on the labor market and retail sales. Treasuries were mixed, with the 10-year yield little changed while the 30-year bond rallied. The split performance suggested investors were balancing near-term economic resilience against longer-term rate expectations, while also tracking how lower oil prices could affect the inflation outlook.

What remains uncertain is whether the apparent easing in tensions will persist and translate into a sustained improvement in crude flows. Markets have been reacting quickly to shifts in headlines, and the durability of the current rally will likely depend on whether the de-escalation narrative is confirmed in subsequent developments.