Oil prices drop and stock markets rise after reports of deal to end Iran war

Reports have raised hopes of an agreement between the US and Iran after days of escalation. Oil prices drop and stock markets rise after reports of deal to end Iran war Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. A woman holding a phone looks up at trading screens Oil prices have dropped and global stock markets have risen following reports that the US and Iran are close to a deal to end the war. Brent crude futures, the global benchmark oil price, fell to $97 (£73) a barrel after the reports before rebounding. The price was over $108 earlier in the day. The FTSE 100 index of London's largest public firms and the equivalent German Dax had risen over 2% midway through the trading day while the French Cac 40 was up 3%. Asian stock markets closed up. The market movements come after news outlet Axios reported that the US believes it is getting close to a one-page document which will end the war and set up more detailed nuclear negotiations. Oil prices are still much higher than the $70 a barrel they were hovering around before the start of the US-Israel war with Iran, which has caused caused production and transportation of oil in the region to slump. Central to the conflict is Iran's threat to attack oil ships crossing the Strait of Hormuz, a narrow waterway south of the country, in response to US-Israeli strikes since 28 February. About a fifth of global oil and gas shipments usually cross the strait, which has been effectively closed for weeks. Global gas prices have also soared since the conflict began. As for stock markets, the big European bourses are lower than they were at the end of February, while the S&P 500 is higher. The main Asian markets all rose on Wednesday, with the South Korean Kospi closing up 6.45%, the Hong Kong Hang Seng ending the day up 1.22%, and the Japanese Nikkei finishing 0.38% higher. The Hang Seng is down since the start of war, but the other two are up. On 8 April, the US and Iran agreed a ceasefire, which caused oil prices to slump and stock markets to jump. However, on Sunday, US President Donald Trump said the US military would guide ships through the Strait of Hormuz, dubbing it "Project Freedom", leading to a rise in attacks in the strait from both Iran and the US. However, on Sunday, US President Donald Trump said the US military would guide ships through the Strait of Hormuz, , leading to a rise in attacks in the strait from both Iran and the US. Trump then said on social media on Tuesday he would pause the operation "for a short period of time to see whether or not the Agreement can be finalized and signed". Trump then said on social media on Tuesday he would "for a short period of time to see whether or not the Agreement can be finalized and signed". He added that "Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran". Trump said the US would continue to block ships transiting to and from Iranian ports, a move designed to put pressure on Iran's economy. He added that "Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran". Trump said the US would continue to block ships transiting to and from Iranian ports , a move designed to put pressure on Iran's economy. On Wednesday, Axios reported that the US believes it is getting close to a one-page memorandum of understanding to end the war, citing two U.S. officials and two other sources briefed on the issue. That would, it is claimed, declare an end to the war in the region and start a 30-day period of negotiations on a deal to re-open the strait, limit Iran's nuclear programme, and lift US sanctions. The reports suggest this is the nearest to agreement that both sides have been since the conflict got under way. The US is believed to be awaiting response from Iran on several key points within the next 48 hours. Donald Trump stands in front of US flags at the White House on 4 May. Vessels in the Strait of Hormuz near Bandar Abbas, Iran, May 4, 2026. Bowen: Strait of Hormuz standoff raises risk of sliding back into all-out war Pro-government protesters wave Iranian flags during a demonstration in April 2026 Some Iranians fear the regime is now more entrenched - and ready for revenge US Secretary of State Marco Rubio also told reporters on Tuesday the initial US-Israeli offensive in Iran was over, as Washington's objectives had been met. US Secretary of State Marco Rubio also told reporters on Tuesday the initial US-Israeli offensive in Iran was over, as "We would prefer the path of peace. What the president would prefer is a deal," Rubio said. Iran has not responded to Rubio's remarks. The country's parliamentary speaker Mohammad Ghalibaf said earlier: "We know well that the continuation of the status quo is intolerable for America, while we are just getting started." Project Freedom, which Trump said was meant to ease the flow of energy through the channel, had tested the ceasefire between the sides. The US said it struck several Iranian "fast boats" in the channel, while the United Arab Emirates also accused Iran of launching strikes on one of its oil ports - a claim Tehran has denied. Your Voice banner image. Your Voice is written in white against a purple background. Have you or your business been affected by fluctuating oil prices due to the conflict in Iran? Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways: Email: yourvoice@bbc.co.uk WhatsApp: +44 7756 165803 Tweet: @BBC_HaveYourSay And you can send us a video note via  WhatsApp or by  using this link .   Humanoid robots are being added to the automation of waste sorting. GameStop's boss Ryan Cohen says he sees potential to make eBay a much bigger rival to Amazon. The bill is tied to the estate left by the firm's late chairman Lee Kun-hee, who died in October 2020. Airlines have removed nearly two million seats from flights over the month, data from Cirium shows. The US president pauses the military operation to get ships through the Strait of Hormuz two days after he announced it. Mark Forster says price for kerosene, which he needs to keep young chicks warm, have almost doubled. Airlines are putting up prices and cancelling flights in response to higher jet fuel prices. 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