World Stocks Hit Record High as Oil Drops 2% on Hormuz Deal Hopes

16 articles · Updated · Reuters · May 29

MSCI’s world index rose 0.4% to a record high while oil fell about 2%, with traders betting a U.S.-Iran deal could reopen the Strait of Hormuz and extend the ceasefire.
Sources said Washington and Tehran had agreed to lift shipping restrictions, but the plan still awaited Donald Trump’s approval and Iranian state media said it was not yet finalized.
Chipmakers led the equity rally after Dell upgraded forecasts, lifting Tokyo 2.5% and Seoul 3.5%, while the S&P 500 had already closed at a record 7,563.63 on Thursday.
U.S. 10-year Treasury yields held at 4.4532% and the dollar slipped on the week, though analysts said any bond rally may be limited because a Hormuz deal would not quickly erase fuel-driven inflation pressure.
French inflation accelerated at its fastest pace in more than two years, Japan data kept June rate-hike bets alive, and investors were still tracking wider geopolitical risk after a Russian drone injured two people in Romania.

Will the world's most vital oil waterway reopen freely or fall under Iran's permanent control?

With military strikes ongoing, is the fragile U.S.-Iran ceasefire deal already doomed to fail?