Oil prices experienced a decline on Wednesday, while global stock markets saw a surge amid optimism surrounding a potential agreement between the United States and Iran to resume crude oil shipments from the Persian Gulf. The price of Brent crude, the global benchmark, dropped by 7.8% to slightly above $100 per barrel, down from over $115 earlier in the week.
President Donald Trump’s comments on social media hinted at a possible reopening of the Strait of Hormuz if Iran accepts an undisclosed agreement. The strait’s closure due to tensions with Iran has disrupted global oil tanker traffic, impacting the flow of oil and contributing to inflationary pressures on various products worldwide.
On Wall Street, the S&P 500 rose by 1.5%, achieving its best performance in nearly a month and reaching a new all-time high. The Dow Jones Industrial Average gained 612 points, or 1.2%, while the Nasdaq composite climbed by 2% to set its own record.
In Canada, the S&P/TSX composite index closed up approximately 1.2% at 33,981.82. Overseas markets also posted significant gains, with Seoul’s index surging by 6.5%, Paris by 2.9%, and London by 2.1%.
Despite the positive market sentiment, uncertainties persist as previous hopes for a resolution with Iran have been dashed before. The price of Brent crude briefly dipped below $97 per barrel before rebounding above $100 following Trump’s warning of escalated military action if Iran rejects the agreement.
Noteworthy developments include Trump’s decision to pause efforts to reopen the Strait of Hormuz forcefully and China’s call for a comprehensive ceasefire after discussions with Iran, given the strong economic ties between the two nations.
Amid ongoing geopolitical tensions, U.S. companies are reporting robust profits for the beginning of 2026, surpassing analyst expectations and supporting market performance. Notable performers include chip companies like AMD and Super Micro Computer, benefiting from the demand for artificial intelligence technology. Energy-intensive companies, such as United Airlines, Carnival, and Royal Caribbean, also witnessed gains due to expectations of easing oil prices.
In the bond market, Treasury yields decreased as declining oil prices alleviated inflation concerns. The 10-year U.S. Treasury yield dropped to 4.35% from 4.43% the previous day, marking a significant shift in bond market dynamics.