Robert BrandMay 26, 2026 — 5:15amGlobal stocks rose to record highs as crude oil fell after officials signalled the US was nearing a deal with Iran to reopen the Strait of Hormuz and restore oil flows.Futures contracts on the S&P 500 climbed 1 per cent, while those on the Nasdaq 100 were up 1.4 per cent. Wall Street was shut for the Memorial Day holiday. The Australian sharemarket is set to advance, with futures at 4.19am AEST pointing to a rise of 20 points, or 0.2 per cent, at the open. The ASX added 0.4 per cent on Monday. The Australian dollar was stronger at US71.75¢ as the US dollar retreated against all of its Group-of-10 peers.Wall Street and a number of other global markets were closed.Getty ImagesThe MSCI All Country World Index, the broadest measure of global equities, rose 0.5 per cent to an all-time high closing level. Europe’s benchmark Stoxx 600 gained for a sixth straight session to close at the highest level since the outbreak of the Iran war. Trading volumes were light, with a number of markets including the UK, Switzerland, Norway and Denmark closed for holidays.WTI crude dropped more than 6 per cent to around $US90 a barrel amid optimism a deal will help restore the flow of oil through the vital Middle East artery. US President Donald Trump said on Monday negotiations with Iran were “proceeding nicely.” Meanwhile, an Iranian delegation travelled to Doha for consultations with senior Qatari officials on the talks, including discussions on the release of frozen Iranian funds.The improvement in risk sentiment follows weeks of stalemate between the US and Iran after several previous efforts to strike a deal. Global equities have since surged on optimism that Middle East tensions may ease and on renewed enthusiasm for the artificial intelligence trade, while elevated oil prices and higher inflation pushed bond yields to multi-year highs.“A clear FOMO factor contributes to unexpectedly strong global risk appetite: investors don’t want to be left out if the Iran war comes to an end while the AI theme continues to lift the stock market,” said Dana Malas, a strategist at SEB.Italy’s benchmark equity index rose past its all-time closing high set in 2000, with a recent rally in energy and chip stocks supercharging it to record levels. Among individual stock moves in Europe, Delivery Hero SE jumped more than 10 per cent after it received a take-over offer from Uber Technologies Inc. in a deal that would value the German delivery company at about €10 billion ($16.2 billion).While the US and Iran closed in on a deal, Trump said he won’t “rush” into an agreement. The deal is still a work in progress and the US is going to give diplomacy every chance to succeed, Secretary of State Marco Rubio said.“After today’s market moves, the most likely scenario already appears to be largely priced in,” said Roberto Scholtes Ruiz, head of strategy at Singular Bank. “Therefore, I would expect some ‘sell the news’ dynamics once a deal is finally reached, and I would refrain from adding exposure to equities until yield curves move lower.”Traders remain focused on inflation. They have fully priced in a Federal Reserve rate hike by year-end, underscoring expectations that the US central bank chair Kevin Warsh will need to act swiftly. Later this week, US Personal Consumption Expenditures data and inflation readings across Europe will offer clues on price pressures and the direction of interest rates.Warsh, who has promised the biggest shakeup in decades at the US central bank, was sworn into office Friday. Trump stressed that he wants Warsh to independently lead the Fed, as he looked to downplay investor concern that he would pressure the new central bank chief on policy decisions.The Fed may have enough reason to justify an interest rate cut rather than a hike under new chairman Warsh, according to BlackRock.Elsewhere, China launched an unprecedented campaign against illegal cross-border trading to stem capital outflows, threatening severe penalties against popular brokers and ordering non-compliant accounts to be liquidated within two years.BloombergThe Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.From our partners