Global Equities Rise, Oil Falls on Reported Iran Talks

U.S. equity markets remained closed Monday for Memorial Day. S&P 500 futures rose and European stock indexes reached four-month highs. Oil prices fell after reports indicated Washington and Tehran were discussing terms that could affect access to the Strait of Hormuz. WTI crude, tracked by the United States Oil Fund, dropped 7 percent to about $89 a barrel, the lowest level since May 7.

Brent crude declined 6.9 percent to roughly $96.37 a barrel. Both benchmarks are now 14 percent below last week’s peaks but remain 45 percent above pre-conflict levels. Gold futures increased 1.2 percent to $4,572 an ounce. Silver futures climbed 3.96 percent to $78.30 an ounce.

A Wall Street Journal report stated that talks encountered difficulty Monday over language concerning Iran’s nuclear program and sanctions relief. Other reports indicated Tehran would require guarantees from China before shipping out highly enriched uranium. The article noted that optimism around any agreement remains limited by these unresolved issues.