Global Markets Gain and Oil Prices Retreat as U.S-Iran Peace Talks Continue

By Dow Jones Newswires Staff

Global stocks gained and oil prices retreated as investors eyed a potential deal between the U.S. and Iran that could open the Strait of Hormuz.

Talks between the two countries are in progress, but a U.S. official said Sunday that there's an agreement in principle under which Iran would reopen the waterway, The Wall Street Journal reported.

Nevertheless, President Trump said in a Truth Social post on Sunday that he was in no hurry to agree to a deal. "Both sides must take their time and get it right," he said.

The reports were enough to push Brent crude prices below $100 a barrel. Elsewhere, European markets advanced in morning trade, with industrial and airline stocks among the continent's largest gainers. Asian markets were also in the green.

Global bond yields dropped and the U.S. dollar slipped.

U.S. and U.K. markets are closed.

--In early morning European trade, Brent crude fell 4.7% to $95.52 a barrel, while WTI futures were down 4.9% to $91.86 a barrel. This pushed European oil and gas stocks lower. While investors are optimistic a deal could lead to energy flowing through the Strait of Hormuz again, caution remains given previous deals have broken down, according to analysts.

--Europe's indexes traded up. The Europe-wide Stoxx 600 was 0.6% higher as industrials gained. Airline and travel stocks were among the largest gainers, with Air France-KLM up 8% and Germany's Lufthansa rising around 4%. The war has hammered the global travel sector, resulting in expensive rerouting of aircraft as well as much higher jet fuel costs that are squeezing margins. In an unrelated move, the index's biggest gainer was German food delivery company Delivery Hero, which rose more than 10% after it disclosed a $11.60 billion takeover offer from Uber.

--Gold prices rose on a weakening dollar, which fell to a one-week low against a basket of currencies. In early European trading, futures in New York were 0.9% higher at $4,564 a troy ounce, while the U.S. dollar index slipped 0.2% to 99.01, making dollar-denominated commodities cheaper for overseas buyers.

--Global bonds yields also fell. Inflation pressures could ease as oil flows more freely, reducing the need for central banks to raise interest rates. In Europe, the German 10-year Bund yield fell 5 basis points to an 18-day low of 2.987%.

--In Asia, Japan's Nikkei 225 index climbed 2.9% while China's benchmark Shanghai Composite gained 1%. Markets in Hong Kong were closed.

--Bitcoin increased 0.8% to $77,210 as investors took a more risk-on stance amid the talks to open the Strait.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

May 25, 2026 04:49 ET (08:49 GMT)