Markets rally amid hopes of US-Iran deal

Markets betting a deal will reopen the Strait of Hormuz and soothe the deep global economic uncertainty cast by the closure of the vital oil & gas route.The United States stock market has been hovering near record highs and oil prices have plunged amid new hope that a ceasefire deal between the US and Iran is close.The rally came on Wednesday as negotiations continued between Washington and Tehran, with markets betting that a deal would reopen the vital Strait of Hormuz, easing oil and gas supply concerns and soothing the deep uncertainty afflicting the global economy.Recommended Stories list of 3 itemslist 1 of 3How badly is Europe affected by fertiliser shortages due to the Iran war?list 2 of 3Israeli strikes follow displacement order for Lebanese city of Tyrelist 3 of 3US, Iran have launched multiple attacks during ceasefire: A timelineend of listOil prices declined sharply after Iran’s state broadcaster said it had obtained a preliminary document outlining a framework for a potential deal.The price of US crude fell 5.5 percent to settle at $88.68, while Brent Crude, the international oil benchmark, decreased to $92 after prices traded above $100 last week.The report suggested that Iran would allow traffic through the strait at pre-war levels within 30 days. It added that the US would lift its naval blockade on Iranian ports.Prices remained subdued even after the White House dismissed the report as a “complete fabrication”.The S&P 500 rose 0.1 percent and added to its all-time high set the day before. The Dow Jones Industrial Average was up 243 points, or 0.5 percent, with an hour remaining in trading, and the Nasdaq composite was 0.1 percent higher.Wednesday is far from the first time markets have rallied amid reports of a possible end to the war, only to slump once more as negotiations fail to deliver a resolution.However, the strength of the current surge reflects statements over the past week that suggest the two parties may be closer than ever to reaching a deal.