Markets Surge as Hopes Grow for Ceasefire in Iran Conflict

Stock futures climbed and oil prices dropped sharply overnight after China's foreign minister urged a full ceasefire in the conflict involving Iran. The moves came as Iranian officials visited Beijing and U.S. officials pressed for steps to reopen the Strait of Hormuz.

Brent crude fell $12.66 to $97.21 a barrel after earlier trading below $100. U.S. crude prices dropped 13 percent. The declines followed weeks of elevated prices that had followed Iran's closure of the vital waterway.

500 rose 1 percent before the opening bell. Dow Jones Industrial Average futures gained 1.2 percent, while Nasdaq futures jumped 1.7 percent. In Europe, France's CAC 40 added 1.6 percent, Germany's DAX rose 1.5 percent and Britain's FTSE 100 surged 1.9 percent.

Asian markets also advanced. South Korea's Kospi gained 6.5 percent to 7,384.56, its first close above 7,000. Australia's S&P/ASX 200 rose 1.3 percent, Hong Kong's Hang Seng added 1.2 percent and the Shanghai Composite index gained 1.2 percent.

Shares of major energy companies fell nearly 5 percent.

Chevron, Exxon Mobil and ConocoPhillips each posted losses close to that level as lower oil prices reduced expected revenues. Airline stocks rose more than 6 percent in premarket trading. Delta, United and American shares gained on expectations of reduced jet fuel costs.

China's foreign minister spoke after meeting Iran's foreign minister, who was visiting Beijing for the first time since the conflict began Feb. 28. The comments followed a U.S. decision to pause efforts to escort commercial vessels through the strait.

A shaky ceasefire has largely held despite reported exchanges of fire earlier in the week. Iran's closure of the strait had disrupted shipments of oil, gas and other products, raising costs worldwide.

“China was deeply distressed by the conflict.”