Global stock markets advanced Monday while oil prices dropped more than $4 a barrel, reflecting investor reaction to President Donald Trump’s statement that negotiations to end the war with Iran are progressing. European equity indexes posted modest gains as the trading day concluded. France’s CAC 40 edged up 1.1% to close at 8,203.32, and the German DAX rose 1.0% to finish at 25,148.39. Britain’s FTSE 100 added 0.2% to 10,466.26. U.S. equity markets remained shuttered for the Memorial Day holiday.
Asian markets showed stronger momentum across open exchanges. Japan’s benchmark Nikkei 225 index surged 2.9% to close at 65,158.19, recording the sharpest regional rally. Australia’s S&P/ASX 200 index rose 0.4% to 8,692.00, and the Shanghai Composite gained nearly 1% to close at 4,152.57. Major exchanges in South Korea and Hong Kong were closed for holidays marking Buddha’s birthday.
The market movements followed diplomatic reporting published on Sunday. Regional officials told The Associated Press that the United States is close to reaching a deal with Iran that would end the war, reopen the Strait of Hormuz, and see Iran surrender its stockpile of highly enriched uranium. The officials said the details and timelines for implementing any agreement are still to be worked out.
Oil benchmarks retreated sharply as traders priced in the prospect of restored commercial shipping routes and a potential reduction in regional conflict risks. The Strait of Hormuz serves as a critical chokepoint for global petroleum exports, and sustained disruptions have previously driven volatility in energy prices.