Global Stocks Rise as Oil Prices Dip After US-Iran Ceasefire Talks Ease Market Fears

Global financial markets ended the week on a mixed but cautiously optimistic note, as stocks rose across major indices while oil prices dropped sharply. The shift came after reports of a fragile ceasefire agreement between the United States and Iran, with diplomatic talks expected to begin in Islamabad.

Wall Street recorded strong weekly gains, with all three major US indices climbing more than 3%. However, trading closed unevenly on Friday. The Dow Jones fell 0.6%, the Nasdaq rose 0.4%, while the S&P 500 ended nearly flat, slipping just 0.1%, reflecting investor uncertainty heading into the weekend.

Energy markets reacted more dramatically. Oil prices fell for the week by about 13%, driven by easing fears over supply disruptions tied to tensions in the Middle East. Analysts say traders are closely watching whether shipping activity through the Strait of Hormuz will fully normalize, a critical route for global oil supply.

Market experts remain cautious despite the temporary diplomatic progress. Analysts from financial institutions noted that investor sentiment is heavily tied to whether maritime security risks in the Gulf are truly over. Meanwhile, inflation in the United States rose to 3.3% in March, fueled in part by earlier energy price spikes linked to conflict.

In Europe, stock markets remained relatively stable, with London and Frankfurt closing almost unchanged while Paris edged slightly higher. As global investors weigh peace talks against ongoing geopolitical risks, markets appear to be balancing hope for stability with lingering uncertainty over energy security and inflation pressures.

source: punch