Oil prices fell and stock markets rallied after President Donald Trump announced that a peace deal with Iran could be within reach. The President stated that Washington had reached a framework agreement, suggesting a deal could be signed as soon as the weekend.
In a move that raised hopes for easing tensions in the Middle East, Trump cancelled planned strikes on Iran. While previous military strikes had cast doubt over progress to end the war, the decision to call off further attacks contributed to the positive market shift.
Oil slid to a two-month low following the announcement. US crude tumbled almost 3 per cent at the open to US$85.13 a barrel, the lowest level since April 17, before paring some losses.
Simultaneously, Wall Street and Asian markets rallied on hopes for an end to the US-Israel war on Iran.