Optimism over potential U.S.-Iran talks to reopen the Strait of Hormuz weighs on oil prices while lifting equity futures.
Brent crude prices fell Monday as markets priced in rising odds of a diplomatic breakthrough between Washington and Tehran to reopen the Strait of Hormuz. The key chokepoint for global oil shipments has seen disruptions amid regional tensions, fueling supply concerns in recent weeks.
Prior to the shift in sentiment, Brent had traded near $85 per barrel, supported by geopolitical risks and OPEC+ production cuts. Analysts had warned of further upside if the Strait remained closed, though consensus estimates suggested limited long-term impact if resolved swiftly.
U.S. stock futures advanced in tandem with the decline in oil, while the dollar weakened modestly against major currencies. The moves reflected a broader risk-on tone as investors recalibrated expectations for energy flows and inflation pressures.