29/05/2026
Buoyed by optimistic sentiment over a preliminary agreement to extend the ceasefire between the United States and Iran, global stock markets have rallied to fresh historic highs. The easing of geopolitical tensions in the Middle East has simultaneously pressured international crude oil prices, triggering a notable decline. The preliminary ceasefire extension agreement is pending signature by U.S. President Donald Trump to take formal effect.
The de-escalation of Middle East tensions has reshaped market expectations, bolstering prospects for global economic recovery and stable energy supply. Market data shows the MSCI All Country World Index rose 0.3%, hitting a new all-time high. Led by strong gains in technology stocks, Asian equities surged 1.5%, hovering just below their record peak. Driven by the AI-fueled market rally and positive ceasefire signals, global markets have fully shrugged off concerns over potential conflicts in the Persian Gulf. Investors widely expect a substantial reduction in the risk of disrupted Middle East energy supplies, providing solid support for equity markets.
Previous Middle East tensions disrupted shipping traffic in the Strait of Hormuz, straining global crude oil supply chains and fueling widespread inflation concerns, which served as a core driver of recent market volatility. As a result, market participants are closely monitoring signs of recovery for this critical maritime passage, with any improvement continuing to impact commodity and equity market movements.
Crude oil market sentiment has improved significantly amid substantive progress in ceasefire negotiations. Brent crude fell 0.8% on Friday to settle at $93 per barrel. The market uptick stems from a proposal to extend the ceasefire by 60 days and launch new rounds of negotiations on Iran’s nuclear program, greatly alleviating geopolitical supply concerns.
In monthly performance, Brent crude has tumbled more than 18% in May, on track for its steepest monthly drop since March 2020, marking a clear cooling trend in the crude oil market.
U.S. stock markets showed divergent performance, with previously high-flying sectors seeing mild pullbacks. Nasdaq 100 futures edged down 0.2% after the index closed at a record high in the previous session, as short-term profit-taking sparked cautious market sentiment. The technology sector remained the focal point of the market with standout moves: SpaceX lowered its target IPO valuation to a minimum of $1.8 trillion, while Dell Technologies Inc. skyrocketed nearly 40% in after-hours trading on upbeat sales outlook.
The U.S. stock market maintained strong overall momentum, with the S&P 500 index poised to register its ninth consecutive weekly gain. According to public data, such a prolonged winning streak has only occurred four times since 1985, highlighting its rarity. Meanwhile, Asian stock markets extended their recovery and are set to post a second straight weekly rise, reflecting broad strength in global risk assets.
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