Oil Price Drop Eases Inflation Worries, Boosts Wall Street

Oil prices are easing on Monday after President Donald Trump announced that he would hold off on new strikes against Iran, calming worries about inflation and prompting a rally in Wall Street.

The price for a barrel of Brent crude sank 4.9% to $83.59, helping airlines and other companies with big fuel bills lead the market. United Airlines rose 6.7%, while American Airlines climbed 6.7%. Norwegian Cruise Line Holdings steamed 3.1% higher.

The S&P 500 rose 1.2% following its wild July, where it swung up and down as oil prices shot higher due to the war with Iran. The Dow Jones Industrial Average was up 569 points, or 1.1%, and the Nasdaq composite was 1.8% higher.

The easing of worries about global flow of crude also led to a decrease in Treasury yields, which fell from 4.75% to 4.68%. This is still above its pre-war level of 3.97%, but it helps reduce the threat to undercut prices for stocks and other investments.