Oil prices dip, global stocks rally on hopes of US-Iran deal

Oil prices eased while global stock markets moved higher after reports suggested the United States and Iran are nearing an agreement to end the war.

Brent crude futures, the global oil benchmark, dropped to $97 (£73) per barrel following the reports before recovering some ground. Earlier in the day, prices had climbed above $108.

In equity markets, FTSE 100 — which tracks leading companies in London — rose more than 2% during mid-session trading. Germany’s DAX posted similar gains, while France’s CAC 40 advanced by around 3%. Markets across Asia also closed in positive territory.

The gains followed a report by Axios indicating that Washington believes it is close to finalising a short framework agreement that could pave the way for ending the conflict and launching detailed negotiations over Iran’s nuclear programme.

Despite the recent dip, oil prices remain significantly higher than the roughly $70 per barrel levels seen before the outbreak of the conflict involving the US, Israel and Iran, which has disrupted oil production and transportation across the region.