Global shares gain and oil prices fall after Trump says talks on ending the war are proceeding

Global shares climbed Monday while oil prices fell sharply after U.S. President Donald Trump announced that talks with Iran to end the war are advancing. The CAC 40 in France rose 1.1%, Germany’s DAX gained 1.0%, and Japan’s Nikkei 225 surged 2.9%, with trading closed in the U.S. for Memorial Day. Trump described negotiations as ‘proceeding in an orderly and constructive manner,’ while regional officials told the Associated Press the U.S. is near a deal to halt hostilities, reopen the Strait of Hormuz, and reduce Iran’s stockpile of highly enriched uranium. The Strait of Hormuz’s reopening is critical for oil markets, as its closure has blocked tankers from exiting the Persian Gulf. Japan, which imports nearly all its oil through the strait, would benefit directly. Analyst Stephen Innes noted markets are shifting from pricing geopolitical fear to a ‘potential peace dividend,’ driving oil and the dollar lower. Benchmark U.S. crude oil dropped $4.77 to $91.83 per barrel, while Brent crude fell $4.86 to $98.68. The U.S. dollar weakened against the yen and euro, reflecting reduced risk premiums. Earlier, the S&P 500 rose 0.4%, the Dow climbed 0.6%, and the Nasdaq gained 0.2%, supported by strong corporate earnings despite rising inflation concerns linked to prolonged conflict. The deal’s details remain unclear, but reopening the strait and uranium reductions could stabilize regional shipping and energy markets. Iran’s nuclear stockpile and Hormuz’s status have been central to tensions, with the U.S. aiming to ease disruptions to global oil supplies. Markets reacted positively to the progress, though inflation and economic uncertainty persist as lingering risks.