US stocks have increased following hopes that a preliminary agreement to end the US-Israel conflict over Iran will bring stability back to energy supply chains, which have faced significant disruptions in the Strait of Hormuz. On Monday, the S&P 500 rose by 1.7 percent, coming close to its all-time high.
The Nasdaq Composite, which focuses on technology firms, surged by 3.1 percent, driven largely by a remarkable 19.6 percent increase in SpaceX’s shares. On Friday, SpaceX made history with the largest market debut ever, making Elon Musk the world’s first trillionaire. The Dow Jones Industrial Average also climbed, gaining 0.9 percent and closing at a new record.
Brent crude oil prices, a key global benchmark, dropped nearly 5 percent to just above $83 per barrel, marking the lowest price since the start of the conflict. Following a slow morning, Asian stock markets continued to rally on Monday. Japan’s Nikkei 225 index briefly surpassed 70,000 for the first time before settling at around 0.6 percent. South Korea’s KOSPI, the top-performing major index this year, rose by more than 2.1 percent.
Jay Goldberg, a senior analyst at Seaport Research Partners in Chicago, noted that the announcement of the US-Iran agreement had shifted investors’ perspectives towards more positive market engagement. While the deal raises expectations for stability in global energy markets, full normalisation of energy flows is likely to take several months due to a backlog of vessels in the Strait of Hormuz. Currently, about 500 ships are waiting to transit the area, which is vital for one-fifth of global oil and liquefied natural gas supplies.
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