LONDON/SYDNEY - Share markets and bonds rallied hard on Monday and oil prices tumbled 5% as a framework peace deal between the US and Iran promised to ease inflationary pressures globally and lessen the need for higher interest rates.
Europe's early optimism drove both the STOXX 600 and FTSE Eurofirst to records. Asia's biggest markets had all leapt overnight, while futures markets pointed to gains of 1.3% to 2% for Wall Street later.
Early on Monday, Pakistani Prime Minister Shehbaz Sharif said on social media an Iranian peace deal had been struck, while President Donald Trump said the pact included opening the vital Strait of Hormuz, though without giving details.
Trump will meet Middle Eastern leaders and attend a working session with Ukrainian President Volodymyr Zelenskiy during a G7 summit in France this week.
Iran said traffic through the strait would be regulated by it and Oman, a potential blow to the rules of free trade that suggests there might be a toll of some kind on transits.
