Brent crude oil has fallen below $100 a barrel on Thursday morning as reports from the Middle East indicate that the US and Iran are nearing a deal for the gradual reopening of the Strait of Hormuz.<\/p>\n
At the time of writing, the front month contract on Brent crude is trading at around $99.7 per barrel while the US benchmark WTI is at $93.6.<\/p>\n
The crucial waterway\u2019s effective closure during the conflict has severely disrupted global oil flows, fuelling inflation and driving energy prices higher worldwide.<\/p>\n
On Wednesday, oil prices had already fallen nearly 8% while global equities rallied after US President Donald Trump signalled that a breakthrough with Iran was close, raising hopes the blockade could soon ease.<\/p>\n
Still, optimism remained cautious as tensions persisted, underscored by a US military strike on an Iranian oil tanker in the Gulf of Oman as Washington increased pressure on Tehran to reach an agreement.<\/p>\n
Related<\/p>\n
Stock markets keep rising <\/p>\n
Asian shares surged on Thursday, led by a 5.7% jump in Tokyo\u2019s Nikkei 225 to a record intraday high, as investors awaited signs of a possible US-Iran agreement that could allow oil tankers to resume moving crude through the Persian Gulf.<\/p>\n
The move extends a powerful rally that has seen the index climb about 18% over the past three months and nearly 73% over the past year, driven largely by strong demand for technology stocks linked to the AI boom.<\/p>\n
Elsewhere in Asia, Hong Kong\u2019s Hang Seng Index rose 1.3% to 26,559.86, Australia\u2019s S&P\/ASX 200 added 0.9% to 8,870.70, and Taiwan\u2019s TAIEX gained 2.1%. South Korea\u2019s KOSPI, however, slipped 0.4% to 7,353.08 as investors locked in profits after the benchmark\u2019s near-7% surge a day earlier, which pushed it above 7,000 for the first time.<\/p>\n
As for European markets, equities opened higher but are down slightly at midday.<\/p>\n
The Euro Stoxx 50 and the broader pan-European Stoxx 600 are both trading between 0.2 and 0.4% lower.<\/p>\n
The UK’s FTSE 100 is down over 0.7% while Germany’s DAX 30, France’s CAC 40 and Italy\u2019s FTSE MIB are all down between 0.2 and 0.4%.<\/p>\n
On Wall Street, US futures are all trading flat.<\/p>\n