GLOBAL oil prices have fallen sharply and stock markets soared after the United States (US) and Iran agreed to a conditional two-week ceasefire deal that includes the reopening of the key Strait of Hormuz waterway.
The price of benchmark, Brent, tumbled over 15 per cent to less than $92 (£68.4) a barrel, while US-traded oil fell similarly to just under $94.
But oil prices remain higher than before the conflict started on February 28. At the time, it was trading at around $70 a barrel.
The cost of energy has jumped as oil and gas supplies from the Middle East have been severely disrupted after Iran threatened to attack ships trying to use the strait in retaliation to US and Israeli airstrikes.
Stock markets in the US opened higher, following sharp rises in Europe and Asia.
The Dow Jones Industrial Average and S&P 500 jumped more than 2.5 per cent, while the Nasdaq traded up 3.3 per cent.
In London, the FTSE 100 share index gained three per cent in mid-afternoon trade. In France, the CAC 40 added 4.9 per cent, while Germany’s Dax rose by more than 5%.
Japan’s Nikkei 225 closed up nearly 5.4 per cent, while South Korea’s Kospi jumped over 6.8 per cent. Hong Kong’s Hang Seng ended three per cent higher, while the ASX 200 in Australia gained 2.5 per cent.
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