Oil prices experienced a decline on Wednesday while global stock markets surged amid optimism surrounding potential negotiations between the United States and Iran to facilitate the transportation of crude oil from the Persian Gulf to consumers. The international benchmark, Brent crude oil, saw a significant drop of 7.8% to slightly above $100 per barrel, down from over $115 earlier in the week.
The situation was influenced by U.S. President Donald Trump’s remarks on social media, suggesting that the Strait of Hormuz could be accessible to all if Iran agrees to a reported proposal that was not disclosed in detail. The conflict in the region has impeded oil tankers from utilizing the strait, hindering the flow of oil and contributing to global inflationary pressures.
On Wall Street, the S&P 500 surged by 1.5%, achieving its most substantial gain in nearly a month and reaching a new record high. The Dow Jones Industrial Average also climbed by 1.2%, a leap of 612 points, while the Nasdaq composite set a new record with a 2% increase.
Canada’s S&P/TSX composite index closed with a gain of approximately 1.2% at 33,981.82. Stock markets in other countries witnessed even larger increases, with Seoul rising by 6.5%, Paris by 2.9%, and London by 2.1%.
Despite fluctuations in oil prices throughout the day, positive signals from Trump and China’s foreign minister calling for a comprehensive ceasefire fueled optimism in the market. Major U.S. companies reported stronger-than-expected profits for the first quarter of 2026, providing support to the stock market amid uncertainties related to the ongoing conflict.
Noteworthy market movers included chip company AMD, which surged by 18.6% after exceeding profit and revenue expectations, driven by growth in artificial intelligence technology. Similarly, Super Micro Computer and Nvidia also experienced significant gains. Companies reliant on fuel costs, such as United Airlines and cruise operators Carnival and Royal Caribbean, saw their stocks rise on expectations of easing oil prices.
In the bond market, Treasury yields declined as oil price decreases alleviated inflation concerns. The 10-year U.S. Treasury yield dropped to 4.35%, down from 4.43% the previous day, marking a substantial shift in bond market dynamics.
