US-Iran deal sparks stock rally, oil prices fall

Financial markets surged on Monday as investors reacted to a preliminary agreement between the United States and Iran to end their months-long conflict and reopen the Strait of Hormuz. The announcement sent oil prices sharply lower and ignited a broad rally in stocks, particularly in rate-sensitive technology shares and transport companies.

The deal framework, which is expected to be formally signed in Switzerland on Friday, did not address unresolved issues such as Iran's nuclear program or the conflict between Israel and Lebanon. However, the prospect of a ceasefire and the reopening of the critical oil shipping channel was enough to trigger a significant market shift. The price of Brent crude oil, the international benchmark, fell by approximately 5 percent, hitting its lowest level since March. U.S. benchmark crude saw a similar decline.

Analysts described the market movement as a classic relief rally, easing fears that inflationary pressures from elevated energy costs would persist. Lower oil prices benefit energy-sensitive industries, and shares of major airlines and cruise lines, including United Airlines, Delta Air Lines, and Carnival Corp., posted strong gains....