Oil prices have dropped and global stock markets have risen following reports that the US and Iran are close to a deal to end the war.
Brent crude futures, the global benchmark oil price, fell to $97 (£73) a barrel after the reports before rebounding to over $101. The price was over $108 earlier in the day.
The FTSE 100 index of London’s largest public firms and Germany’s Dax index closed over 2% up while the French Cac 40 was up 3%. Asian indexes also ended the day higher while the US S&P 500 rose 1% in early trading.
The market movements come after Axios reported that the US believes it is close to a one-page document which will end the war and set up detailed nuclear talks.
Hours later, an Iranian foreign ministry spokesperson told Iranian Students’ News Agency that the US proposal to end the war with Iran was still being considered.
Oil prices are still much higher than the $70 a barrel they were hovering around before the start of the US-Israel war with Iran, which has caused caused production and transportation of oil in the region to slump.
Central to the conflict is Iran’s threat to attack oil ships crossing the Strait of Hormuz, a narrow waterway south of the country, in response to US-Israeli strikes since 28 February.
About a fifth of global oil and gas shipments usually cross the strait, which has been effectively closed for weeks. Global gas prices have also soared since the conflict began.
