Global Stocks Climb as Oil Prices Decline Amid US-Iran Tensions

May 5, 2026

75 min

May 5, 2026 23:30

Stocks rise, oil falls as traders eye earnings, US-Iran ceasefire

## Stock Market Gains

Global stock markets saw significant gains, with the S&P 500 and Nasdaq reaching new heights. The positive momentum was driven by strong first-quarter corporate earnings, overshadowing concerns about the US-Iran ceasefire. The Nasdaq led the charge with a 1% increase, bolstered by substantial gains in chip companies like Intel and Micron.

## Oil Prices Drop

Oil prices fell sharply, with Brent North Sea crude dropping 4% to under $110 per barrel. This decline followed a surge the previous day due to military tensions in the Strait of Hormuz, a crucial oil export route. Despite ongoing missile and drone attacks from Iran, markets were reassured by US Defense Secretary Pete Hegseth's comments indicating no desire for conflict.

## European Market Performance

European stocks also experienced growth, with Paris and Frankfurt indices rising over 1%. However, London's FTSE 100 fell by 1.4%, impacted by a significant drop in HSBC shares due to unexpected fraud charges and Middle East economic risks. Meanwhile, Italian bank UniCredit saw its shares rise over 6% after reporting strong profits.

## Asian Market Reaction

In Asia, markets were less optimistic, with declines in Hong Kong, Singapore, and other major indices. The Australian market also retreated following an interest rate hike by the central bank. Tokyo and Shanghai markets were closed for holidays.

## Currency Movements

In currency markets, the dollar strengthened against the yen, while the euro and pound also saw slight increases against the dollar. The euro weakened slightly against the pound.

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