While off their earlier opening gains, European markets were higher this afternoon as oil prices tumbled after the US and Iran reached a preliminary peace agreement that would open the Strait of Hormuz and end the three-month-long conflict in the Middle East.
Global risk sentiment got a lift and Brent crude prices dropped 4% after US and Iranian officials said they had agreed on a framework for a deal, scheduled to be signed on Friday.
The Paris CAC had gained 1.2%, while the Frankfurt DAX was up 1.4% in afternoon trade, but London’s FTSE index dipped 0.02%.
Dublin’s ISEQ index advanced 1.2% this afternoo with Ryanair, Origin Enterprises, Kingspan and FBD Holdings all higher.
Wall Street’s main indexes also opened with gains today after Washington and Tehran reached that preliminary agreement to end the Middle East conflict and reopen the Strait of Hormuz.
Earlier in Asian trade, Japan’s Nikkei share average rallied 5% to close at an all-time high after news that the US and Iran had agreed on a framework for a deal to end their war, fuelling relief across markets.
Japan, which depends on the region for about 95% of its oil imports, has seen the yen come under pressure and bond yields rise amid concerns that higher crude prices would lift import costs.
The Bank of Japan will hold a two-day policy meeting ending tomorrow. It is widely expected to raise its policy rate to a 31-year high of 1% and signal its readiness to keep pushing up borrowing costs.