Global Stocks Rally As Oil Prices Fall On Iran Deal Hopes
Global stock markets surged, oil prices declined and the U.S. dollar weakened on Wednesday after President Donald Trump claimed “great progress” had been made towards a “final agreement” with Iran.
Investor optimism also received support from continued momentum in artificial intelligence-driven trades, which pushed technology stocks and global equity benchmarks to fresh highs.
Oil Drops After Trump Signals Hormuz Pause
Trump said the United States would briefly pause an operation escorting ships through the Strait of Hormuz, a key global shipping route that carries roughly one-fifth of the world’s oil supply.
Iran has blockaded the strait since late February, contributing to a global energy crisis. Following Trump’s comments, Brent crude fell 1.6% to $108.07 per barrel.
Meanwhile, S&P 500 e-mini futures climbed 0.3%, reflecting stronger investor appetite for risk assets.
MSCI’s All-Country World Index rose 0.4% to a new record high. The company’s Emerging Markets benchmark and its broad Asia-Pacific index outside Japan also reached fresh peaks.
South Korea’s Kospi index led the gains, surging 6.6% and crossing the 7,000 level for the first time.
AI Spending Continues To Drive Markets
Wall Street had already closed at record highs on Tuesday. The S&P 500 gained 0.8%, while the Nasdaq Composite advanced 1%.
Chris Weston, head of research at Pepperstone Group in Melbourne, said investors continued increasing exposure to sectors expected to benefit from artificial intelligence growth in 2026.
Technology companies attracted the strongest inflows, particularly Apple and semiconductor-related firms.
Samsung Electronics jumped 14.8% after trading resumed in Seoul following a holiday. The rally pushed the company’s market value above $1 trillion, overtaking Berkshire Hathaway and moving closer to Walmart.
Rushil Khanna, head of equity investments for Asia at Ostrum, said spending by major U.S. cloud-computing firms was generating significant growth opportunities across Asian industries linked to AI infrastructure.
He said sectors including semiconductors, technology hardware, industrials and materials were benefiting from rising capital expenditure tied to artificial intelligence development.
AMD Forecast Boosts Semiconductor Sector
Advanced Micro Devices rose 16.5% in extended trading after the company projected second-quarter revenue above Wall Street expectations.
The chipmaker said demand for its data-centre processors remained strong as cloud-computing companies accelerated investment in AI infrastructure.
The results added further momentum to the broader semiconductor rally that has fuelled gains across global equity markets this year.
Dollar Weakens As Yen Strengthens
In currency markets, the U.S. dollar index slipped 0.3% to 98.02.
The euro rose to $1.1736, while sterling climbed to $1.3588. Both currencies gained roughly 0.4% during the session.
The Japanese yen strengthened sharply, rising as much as 1.8% to 155 per dollar. Traders remained alert to the possibility of further intervention by Japanese authorities to support the currency.
Thomas Mathews, head of markets for Asia Pacific at Capital Economics, said improving sentiment surrounding a possible U.S.-Iran agreement may have provided a favourable backdrop for yen support measures.
The Australian dollar climbed 0.9% to $0.7246, its highest level since June 2022, after a third consecutive interest-rate increase boosted investor confidence. The New Zealand dollar also advanced 1% to $0.5947.
Gold Rises While Cryptocurrencies Slip
The yield on the benchmark U.S. 10-year Treasury note remained steady at 4.424%.
Gold prices climbed 2.1% to $4,651.84 per ounce as investors continued seeking safe-haven assets despite stronger equity markets.
In cryptocurrency trading, bitcoin slipped 0.5% to $81,264.67, while ether declined 0.8% to $2,364.40.
With inputs from Reuters
