European stocks opened 2% higher on March 10 as oil prices declined after U.S. President Donald Trump signaled that America’s military actions in Iran will end soon.
The pan-European Stoxx 600 index was up 2%, with most sectors in positive territory. The Stoxx Europe Oil and Gas index shed around 0.7% as global oil prices continue to move lower.
Similarly, all major stock indices across Asia are in the green, with Japan’s benchmark Nikkei index up 3% on the day amid what analysts are calling a “relief rally.”
In the U.S., all three major stock indices are rising in premarket trading, having recovered from big swings and dramatic drops in the previous trading session.
Stocks are moving higher as crude oil prices retreat after topping $100 U.S. a barrel a day earlier. At one point, U.S. oil prices were close to $120 U.S. per barrel.
Brent crude oil, the international standard, is currently trading at $91.92 U.S. a barrel, down 7% from the previous day.
West Texas Intermediate (WTI) crude oil, the American benchmark, is down 6% and trading at $89.21 U.S. per barrel.
Oil prices fell sharply after Trump essentially declared victory in Iran and said that the U.S. and Israel would stop bombing the country soon, which had caused chaos across the Middle East.
Trump also said that the U.S. might escort ships through the Strait of Hormuz waterway that connects the Middle East and Asia, and where about 20% of the world’s oil flows.
Iran has threatened ships in the Strait of Hormuz, leading to the shipping lane’s closure and causing a dramatic spike in crude prices.
Metal prices have resumed their upward trajectory as oil prices and the U.S. dollar retreat, with gold up 2% and silver rising 5% on the day.
