Oil Price Swings and Diplomacy Drive Overseas Market Gains

Overseas financial markets closed out a volatile but predominantly positive week on August 7, 2026. This was largely driven by Middle East diplomacy, sharp swings in crude oil prices, and changing expectations for U.S. interest rates.

The FTSE 100 in the UK saw a gain of 33 points, or 0.30%, while Germany's DAX rose by 464.33 points, or 1.80%. France's CAC 40 also advanced, gaining 148.19 points, or 1.73%.

However, Hong Kong's Hang Seng fell despite mainland China's Shanghai Composite being one of the week's biggest winners. The Shanghai Composite rose by 127.43 points, or 3.34%, while Australia's S&P/ASX 200 gained 286.80 points, or 3.19%.

The key factor driving market movements was oil prices, which plummeted on August 3 due to renewed diplomatic efforts involving the United States and Iran. However, by Thursday, sentiment had reversed as markets reacted to concerns over access to the Strait of Hormuz.