Topic analysis

Oil prices fall as Trump says strait of Hormuz ‘open to all’ if Iran accepts deal

Oil prices dropped 10% to below $100 a barrel (the first time since April 22) and global stock markets rallied after US President Donald Trump announced 'great progress' toward a final agreement with Iran, including a short pause to US escort operations in the Strait of Hormuz—through which 20% of the world's oil flows—while Iran signaled it would reopen the waterway. Reduced geopolitical tensions also led to rising gold prices, easing UK gilt yields, and adjusted investor expectations for central bank rate hikes, including no cuts from the Federal Reserve this year and potential hikes from the European Central Bank and Bank of England over the next 12 months.