Oil Price Dip Fuels Global Stock Rally Amid US-Iran Tensions

Stock markets rose globally on Thursday as oil prices dipped below $90 per barrel. The decrease in oil prices outweighed concerns over the ongoing stalemate in peace negotiations between Iran and the US, which had driven up energy costs earlier.

Oil prices fell by 2% to $87.30, with commercial crude oil inventories posting their largest weekly gain since January 2023. The Organization of the Petroleum Exporting Countries (OPEC) also lowered its forecast for global oil demand growth in 2026.

Meanwhile, traders reduced their bets on a September interest rate hike by the Federal Reserve, pricing in a 65% probability of keeping rates unchanged next month compared to 50% on Wednesday. This shift was driven by softer-than-expected US data, which reinforced expectations that the Fed will maintain its current monetary policy stance.

Technology stocks led gains across major indices, with the Nasdaq outperforming peers after a batch of strong earnings reports from AI infrastructure firms. The MSCI's main world stock index rose 0.20%, while Europe's STOXX 600 climbed 0.26%.