Global Markets Rally, Oil Prices Fall on Hopes of US-Iran Ceasefire and Strait of Hormuz Reopening

Global equity markets advanced and crude oil prices fell on Monday as growing optimism mounted that the United States and Iran were nearing an agreement to end their conflict, a deal that could include reopening the strategic Strait of Hormuz.

US President Donald Trump said negotiations were "proceeding nicely," comments that helped lift risk appetite across international markets. At the same time, US Secretary of State Marco Rubio cautioned against rushing an agreement, saying diplomacy should be given every chance — remarks that highlighted remaining uncertainty even as sentiment improved.

Market participants interpreted the potential deal as likely to ease pressure on global energy markets after disruptions tied to the closure of the strait had pushed prices higher. The prospect of restored shipping through the Hormuz corridor contributed to a broadly positive shift in investor risk sentiment.

Coverage of the move in global markets was shaped in part by the timing of the US market calendar: US financial markets were closed on May 25, 2026, for the Memorial Day holiday, a factor that the reporting notes may have influenced the nature of the market activity recorded that day.