Oil prices fell on Wednesday morning as hopes for an end to the war with Iran lifted sentiment across global markets, pushing European stocks higher. The move followed comments from US President Donald Trump that Washington would temporarily pause “Project Freedom”, its naval mission escorting ships through the Strait of Hormuz, citing “great progress” in talks with Tehran.
In a post on Truth Social, Trump said, “While the blockade will remain in full force and effect, Project Freedom (the movement of ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the agreement can be finalised and signed.”
The Strait of Hormuz has been effectively closed since the conflict began on 28 February, disrupting around one-fifth of global oil and gas supplies and leaving more than 20,000 people stranded aboard ships in the Persian Gulf.
US military officials have previously said a ceasefire with Iran was in effect, although uncertainty over the situation remains.
Crude oil futures fell late on Tuesday. International benchmark Brent crude for next-month delivery dropped 1.3% to $108.47 a barrel on Wednesday morning, while US benchmark West Texas Intermediate fell $1.37 to $100.90 a barrel. Prices nevertheless remain well above the roughly $70 levels seen before the outbreak of the war.
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European stocks opened sharply higher on Wednesday, extending a global equity rally as investor optimism over artificial intelligence and easing geopolitical tensions lifted sentiment.
Major benchmarks across the region rose more than 1% in early trading, with the FTSE 100 gaining 1.2%, Germany’s DAX climbing 1.8%, and France’s CAC 40 advancing nearly 1.7%.
In Asia, South Korea’s Kospi surged 6.5% to a record high after markets reopened following Tuesday’s holiday. The rally was led by Samsung Electronics, whose shares jumped almost 13%, pushing the company’s market value above $1 trillion for the first time.
Samsung, alongside rival SK Hynix, has emerged as a major supplier of high-performance chips powering the global AI boom. Shares in SK Hynix also rose around 10% in early trading.
Elsewhere in Asia, Australia’s S&P/ASX 200 gained nearly 1%, while Hong Kong’s Hang Seng rose 0.7% and Shanghai’s Composite index added 1%.
Japanese markets remained closed for a public holiday.
