Crude Oil Prices Plummet Amid Reports of Ongoing Nuclear Talks with Iran

Market Summary: Oil Prices Plummet, Stocks Rebound as Trump Announces Talks with Iran

Key Figures:

• U.S. Crude: down 9.61% to $88.84 a barrel
• Brent: down 10.94% to $99.90 per barrel
• Dow Jones Industrial Average: up 631.00 points, or 1.38%, to 46,208.47
• S&P 500: up 74.51 points, or 1.15%, to 6,580.99
• Nasdaq Composite: up 299.15 points, or 1.38%, to 21,946.76
• MSCI's gauge of stocks across the globe: up 4.93 points, or 0.50%, to 986.24

Market Analysis

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The global stock market rebounded from a four-month low on Monday after U.S. President Donald Trump announced that he would postpone military strikes against Iranian energy infrastructure and stated that the U.S. was in talks with Tehran to end the war. Trump's comments led to a significant decline in oil prices, with U.S. Crude falling by over 9.61% and Brent dropping by 10.94%. The dollar also fell against other major currencies, and government borrowing costs eased.

Stock Market Performance

The Dow Jones Industrial Average rose by 631.00 points, or 1.38%, to 46,208.47, while the S&P 500 gained 74.51 points, or 1.15%, to 6,580.99. The Nasdaq Composite also rose by 299.15 points, or 1.38%, to 21,946.76. The Russell 2000 small-cap index gained 2.5%, while the pan-European STOXX 600 index rose 0.61%.

Bond Market

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Investors trimmed their bets on Bank of England rate hikes, now pricing in two hikes by year-end versus more than three earlier on Monday. The 2-year bond yield fell 17 basis points on the day to 4.409%, while the 10-year yield dropped from its highest since 2008. In the U.S., two-year and 10-year Treasury yields were 4 to 5 basis points lower, with the 10-year yield last at 4.348%.

Currency Market

The dollar was broadly soft, having traded higher against most other currencies until the headline hit. The euro was last up 0.37% at $1.1613.