ISLAMABAD – Web Desk: Global financial markets showed positive momentum following reports of renewed talks between Iran and the United States in Islamabad, easing concerns over potential oil supply disruptions in the Middle East.
Crude prices declined while stock markets worldwide received a boost as the risk premium in oil markets diminished.
At the start of trading, geopolitical tensions—particularly around the Strait of Hormuz—had briefly pushed Brent crude to $107.02 per barrel and West Texas Intermediate (WTI) to $97.40 per barrel. However, the situation reversed after confirmation that an Iranian delegation would travel to Pakistan for talks, with a two-member US delegation also expected to arrive for diplomatic engagement.
Following the positive development, oil prices dropped as the risk premium eased. Brent fell to $104.80 per barrel, while WTI declined to $93.88 per barrel, reflecting reduced fears of an immediate supply disruption through the strategic waterway.
Despite the decline, Brent remained above $100 per barrel, though daily volatility narrowed to between $3 and $6—indicating a relatively more stable outlook.
According to market analysts, reduced US-Iran tensions have lowered the risk of confrontation in the Strait of Hormuz, one of the world’s most critical oil transit chokepoints. However, prices remain sensitive to any new geopolitical developments as markets balance potential sanctions relief against lingering supply concerns.
Falling oil prices supported global stock markets, with major indices moving into positive territory. Lower crude prices eased inflation fears and boosted investor confidence, particularly in energy-importing nations.
In the United States, major indices including the S&P 500 and Dow Jones Industrial Average rose between 0.3% and 0.7%, driven by expectations of lower energy costs and improved corporate profits. However, energy sector shares lagged due to the drop in oil prices.
In the United Kingdom, the FTSE 100 gained approximately 0.4% to 0.8%, supported by the broader market trend and lower oil prices, though weakness in the energy sector slightly capped the upside.
