The news of the agreement between America and Iran to end the war has had a big impact on the global markets. After the confirmation of this deal, there was a rise in the stock markets around the world on Monday, while a sharp decline was recorded in the prices of crude oil.
In the international market, the price of Brent crude oil has fallen by about 4.8% to $ 83.18 per barrel. Before this, in a few weeks its price had reached close to $ 100 per barrel, whereas before the war started it had remained at the level of around $ 70 per barrel. Experts believe that due to reduced geopolitical tension, the uncertainty regarding oil supply has reduced, which has had a direct impact on prices.
The impact of the news of the agreement was clearly visible in the American stock markets as well. There was a strong rise on Wall Street on Monday. The Dow Jones Industrial Average was seen trading with a gain of about 650 points. With this, the S&P 500 index registered a rise of about 1.5%, while the Nasdaq Composite Index based on technology stocks jumped by 2.3%.
According to analysts, the reduction in international tensions has strengthened investor confidence and increased risk appetite. Due to this, buying in the stock markets increased and the inclination towards safe investment decreased to some extent.
The fall in crude oil prices is also being considered a positive sign for the market, as it may reduce inflationary pressure in the coming time. Due to falling oil prices, the cost of transport and manufacturing sector is also expected to reduce, the impact of which can be seen on global economic activities.
However, experts also believe that this situation is not completely stable and the direction of the market in the coming days will depend on how strongly the agreement between the US and Iran is implemented and how stable the relations between the two countries remain.
At present, this agreement has given relief to the global markets and created a positive environment among investors. This rise in stock markets and fall in oil prices is being considered an important sign for the global economy in the coming times.