Kamal Ghorui
US stock markets jumped on Wednesday while oil prices declined as hopes resurfaced for a possible pause in the war with Iran, lifting investor sentiment across global financial markets.The S&P 500 rose 1.1% in early trading after the United States delivered a proposal to Iran aimed at halting the conflict. The Dow Jones Industrial Average was up 529 points, or 1.1%, at 9:35 a.m. Eastern time, while the Nasdaq Composite gained 1.3%, AP reported.Brent crude, the global oil benchmark, fell 5.4% to $94.78 per barrel amid expectations that easing hostilities could allow smoother flow of oil and natural gas from the Persian Gulf. Oil tanker movement has remained disrupted around the Strait of Hormuz, which had earlier pushed Brent prices close to $120 per barrel.Despite the rally, markets remained volatile as uncertainty persisted over the duration and trajectory of the conflict, which began more than three weeks ago with US and Israeli strikes on Iran. Financial markets have swung sharply in recent weeks, with sentiment shifting rapidly in response to geopolitical developments.Iran did not confirm receiving the US ceasefire proposal and publicly rejected the diplomatic effort, even as fresh attacks were launched on Israel and Gulf Arab countries. Military action also continued against Iran, while the US deployed additional paratroopers and Marines to the region.Optimism, however, was visible across global markets, with stock indices rising more than 1% in several regions, including London, Paris and Shanghai. Japan’s Nikkei 225 surged 2.9%.In the bond market, Treasury yields eased, potentially providing some relief for borrowing costs such as mortgages that had risen since the start of the conflict. The yield on the 10-year US Treasury slipped to 4.33% from 4.39% late Tuesday, though it remained above the 3.97% level seen before the war began.Gold prices also recovered, rising 3.5% to $4,558.10 per ounce. The metal had earlier touched nearly $5,400 this month before retreating as higher Treasury yields reduced its relative appeal.On Wall Street, companies with high fuel expenses rallied on the back of falling oil prices. Norwegian Cruise Line Holdings rose 4.2%, while United Airlines gained 4%.Robinhood Markets jumped 7.1% after its board approved a programme to return up to $1.5 billion to shareholders through stock buybacks.
