Global Stocks Rally, Oil Falls as Trump Signals Possible Iran Deal
Iranian Foreign Ministry spokesperson Esmaeil Baqaei said Tehran had "not reached a final conclusion on the agreement," adding that while most of the text had been finalized, new US demands had complicated the negotiations.
ERBIL (Kurdistan24) – Asian and European stock markets rallied while oil prices fell on Friday after US President Donald Trump stepped back from threats of further military strikes on Iran and suggested that a deal with Tehran could be signed within days, boosting investor confidence.
However, uncertainty remained over the prospects for an agreement. Iranian Foreign Ministry spokesperson Esmaeil Baqaei said Tehran had "not reached a final conclusion on the agreement," adding that while most of the text had been finalized, new US demands had complicated the negotiations.
Investor sentiment was also lifted by the highly anticipated market debut of Elon Musk's SpaceX, which is set to complete what is expected to be the largest initial public offering (IPO) in history. The $75 billion share sale values the company at nearly $1.8 trillion, placing it among Wall Street's 10 largest firms and ahead of Tesla, Meta, and Walmart.
Wall Street had already posted strong gains on Thursday, with the S&P 500 rising 1.8 percent, while oil prices dropped sharply following Trump's comments signaling a shift toward diplomacy.
"Donald Trump's rhetoric flipped intraday from strike risk and hard military language toward no immediate attack, high-level diplomacy with Iran, and talk of a deal being close enough to sign as soon as this weekend in Europe, with Vice President JD Vance expected to attend," said Stephen Innes of SPI Asset Management.
Markets are also closely watching global central banks. The European Central Bank raised interest rates on Thursday for the first time since 2023, responding to inflationary pressures fueled by the Iran conflict and rising energy prices. Investors increasingly expect the US Federal Reserve could also tighten monetary policy, while the Bank of Japan is due to meet next week.
Capital Economics analyst Abhijit Surya said persistent inflationary pressures mean there is "almost certainly still be a majority in favour of a (BoJ) rate hike."
In Asia, Japan's Nikkei index closed nearly three percent higher, while South Korea's Kospi ended up 4.6 percent. Hong Kong's Hang Seng and mainland China's Shanghai Composite also posted solid gains.
European markets followed suit in early trading, with Paris' CAC 40 rising 1.6 percent, Frankfurt's DAX gaining 1.4 percent, and London's FTSE 100 advancing just under one percent.
Meanwhile, benchmark oil prices continued to retreat, with both Brent crude and West Texas Intermediate falling by more than two percent.