Stock markets surged on Friday, tracking a global rally driven by a historic peace deal between the United States and Iran. The agreement, signed in Switzerland, ended the 107-day war between the two nations and reopened the Strait of Hormuz, a critical waterway for global oil supplies.
Peace deal boosts investor sentiment
The US and Iran finalized the accord after weeks of negotiations. The deal includes the reopening of the Strait of Hormuz, through which about one-fifth of the world's oil passes. This development led to a sharp drop in oil prices, further fueling the market rally.
Investors responded positively to the reduced geopolitical tensions and the prospect of stable energy supplies. Major indices in Asia, Europe, and the US posted significant gains.
Impact on oil markets
Oil prices fell sharply as the agreement removed the risk of supply disruptions. Analysts expect prices to stabilize at lower levels in the coming weeks, benefiting economies reliant on oil imports.
The peace deal marks a turning point in US-Iran relations and has been welcomed by global leaders. The Strait of Hormuz, previously a flashpoint, is now expected to operate without hindrance.
