Oil Price Drop Fuels Global Stock Market Rally

Global stock markets rebounded on Monday after a tense week of Middle East hostilities eased, sending oil prices sharply lower. The lull in fighting over the Strait of Hormuz saw Brent crude plummet by 6.3% to $90.70 a barrel, while U.S. crude dropped 5.7% to $84.12.

The relief rally spread across the globe, with Europe's STOXX 600 climbing nearly 0.5%. Economically sensitive retail and travel stocks rallied more than 2%, but oil stocks weighed on the broader market. S&P 500 futures rose 0.9%, while Nasdaq futures jumped 1.5%.

The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%. The euro edged up 0.23% to $1.1395, and most major currencies advanced against the dollar as traders pared back the probability of rate hikes from the Federal Reserve this week.

The U.S. central bank's decision is due on Wednesday, with markets implying a one-in-three chance of a rate rise. Analysts doubt Chair Kevin Warsh would support such a move, citing concerns about inflation risks ahead.