Oil Prices Plummet as Iran Talks Boost Markets
Oil prices plummeted on Monday as investors cheered news of potential talks between the US and Iran, weighing in at over $83.52 a barrel for Brent crude. This marks a significant drop of more than 5% following US President Donald Trump's announcement that discussions with Iran would take place on Monday.
The decline in oil prices was accompanied by a rise in European stock markets, with the German DAX hitting an intra-day record and climbing 1.4%. The yen also firmed up to a three-month high after joint intervention between the US and Japan aimed at supporting it.
US Treasury Secretary Scott Bessent confirmed that the two nations would continue to work together to stabilize the yen, which had been sliding towards 40-year lows. Bessent noted that further interest-rate hikes by the Bank of Japan could provide additional support for the currency.
The market's positive reaction was also attributed to a strong earnings season, with 86% of S&P 500 companies beating expectations and over half of component firms having already reported results.