Oil Prices Plunge as US-Iran Tensions Ease, Stocks Rally

Falling oil prices have sparked a relief rally in global stocks and bonds. Easing tensions between the US and Iran led to a decline in Brent crude, which dropped 7.8% to $89.41 a barrel, while US crude fell nearly 7% to $83.2.

The lull in fighting over the Strait of Hormuz also saw Europe's STOXX 600 climb 0.9%, closing in on early July's all-time highs. Economically sensitive retail and travel stocks rallied more than 2%, although a drop in oil stocks weighed on the broader market.

The US central bank's decision, due on Wednesday, is expected to hold steady, but some analysts see a one-in-three chance of a rate hike. This week also brings a packed schedule of earnings reports from major companies, including tech darlings Microsoft and Amazon.