Oil prices fall sharply on hopes of Middle East peace talks while the yen strengthens after U.S.-Japan currency intervention.
Brent crude futures plunged $4.50, or more than 5%, to $83.40 a barrel as U.S. President Donald Trump announced renewed talks with Iran. The move follows the cancellation of a planned military strike and hopes for reopening the Strait of Hormuz.
European equities rose, with the German DAX hitting an intraday record and closing up 1.3%. S&P 500 and Nasdaq futures also gained, supported by strong earnings reports, with 86% of S&P 500 companies beating expectations so far. Asian markets struggled, however, with Japan’s Nikkei dropping 1%.
The yen firmed to a three-month high after the U.S. and Japan confirmed joint intervention to support the currency. The shift in sentiment weighed on oil while boosting risk assets in Europe.