Global shares were mostly higher Monday and oil prices slipped nearly 7% as the U.S. and Iran paused strikes over the weekend following two weeks of attacks while discussing a possible return to negotiations on an interim cease-fire deal.
The Pentagon did not respond to questions about the pause in attacks on Iranian coastal areas and infrastructure after nearly two weeks of escalating fighting sparked by Iran's firing at ships trying to transit the Strait of Hormuz.
But markets reacted with relief. U.S. futures surged early Monday and the price of a barrel of Brent crude, the international standard, dropped 6.8% to $85.49.
U.S. benchmark crude dropped 7% to $83.06 per barrel.
"Oil's sharp retreat at the Monday open did more than knock a few dollars off the barrel. It loosened the geopolitical knot that had been tightening around equities, currencies, bonds and central banks for most of July," Stephen Innes of SPI Asset Management said in a commentary.
