US equity markets posted broad gains on Monday, led by a nearly 2% jump in the Nasdaq Composite, as investors reacted to reports that Iran has confirmed ongoing negotiations to allow increased tanker traffic through the Strait of Hormuz.
The development marks a significant de-escalation in geopolitical risks that had previously weighed heavily on global risk sentiment and energy supply chains.
West Texas Intermediate (WTI) crude fell below the $80 per barrel threshold, reflecting market expectations that the threat of supply disruptions in the Persian Gulf is receding.
The shift in diplomatic posture triggered a rapid rotation in market positioning.
While technology and growth stocks rallied on the improved risk outlook, energy prices faced downward pressure.
West Texas Intermediate (WTI) crude fell below the $80 per barrel threshold, reflecting market expectations that the threat of supply disruptions in the Persian Gulf is receding.
The divergence highlights how quickly capital reallocates when geopolitical premiums are removed from energy valuations.