Finance

Executive summary

Global stock markets experienced gains and crude oil prices dropped significantly on Monday amid increasing optimism that the United States and Iran are nearing a deal to end their conflict, which would include reopening the critical Strait of Hormuz. US President Donald Trump stated that negotiations were 'proceeding nicely,' although US Secretary of State Marco Rubio cautioned against rushing an agreement, emphasizing that diplomacy would be given every chance. The potential agreement is expected to ease pressure on global energy prices, which have been elevated due to the conflict and the closure of the strait, and has contributed to a positive shift in risk sentiment across international markets.