Global oil prices declined sharply after growing optimism over a potential U.S.-Iran agreement boosted expectations of smoother energy supplies and reduced market uncertainty.

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• Brent crude prices fell 5.4% to $78.66 per barrel, dropping below the $80 mark for the first time since early March 2026.
• Market sentiment improved as investors anticipated that a tentative U.S.-Iran agreement could help restore normal shipping activity through the Strait of Hormuz.
• The Strait of Hormuz remains one of the world’s most critical energy corridors, carrying a significant share of global crude oil and liquefied natural gas shipments.
• Expectations of uninterrupted oil flows reduced concerns about supply disruptions, prompting traders to lower risk premiums that had previously pushed crude prices higher.
• In the United States, stock markets showed mixed movement as investors balanced improving energy outlooks with broader economic and corporate earnings expectations.
• The S&P 500 slipped 0.2%, remaining within 1% of its recent record high despite continued market volatility linked to global geopolitical developments.
• The Dow Jones Industrial Average gained approximately 502 points, or 1%, reflecting investor confidence in sectors expected to benefit from lower energy costs.
• Analysts believe future oil price trends will largely depend on developments in Middle East diplomacy, shipping security and global demand conditions over the coming weeks.