Global Stocks Reach Records as Oil Falls on Iran Deal Signals

U.S. equity futures rose Monday and several global stock indexes reached record highs after senior U.S. officials said the United States and Iran were nearing an agreement to reopen the Strait of Hormuz. Crude oil prices fell more than 5 percent, with WTI futures trading near $91 a barrel and Brent contracts dropping below $98.

The S&P 500 futures gained 0.9 percent and Nasdaq futures rose 1.3 percent, both reaching record territory. The MSCI All Country World Index increased 0.4 percent to an all-time closing high. Europe’s Stoxx 600 index extended gains for a sixth straight session.

The dollar declined against all Group-of-10 currencies.

Treasury note futures advanced 20/32 to near 109-28. Gold climbed more than $50 to near $4,560 an ounce and silver rose 3 percent. Asian markets also advanced, with Japan’s Nikkei surging more than 3 percent to a record high and Taiwan’s Taiex index rising about 3 percent.

Trump said he would not “rush” into an agreement. Secretary of State Marco Rubio stated the deal remains a work in progress and that the United States will give diplomacy every chance to succeed. Iran’s foreign ministry spokesperson said a framework had been reached but added that an agreement is not imminent.

Iran indicated it would not collect tolls on the Strait of Hormuz but noted that services provided would require a price. U.S. cash markets remained closed for the Memorial Day holiday, and several European markets were also shut for holidays.