Oil prices fall as U.S. stocks rise on Iran pause

• Oil prices dropped after the U.S. and Iran paused fighting, with Brent crude falling 6.6% to $90.41 a barrel.
• U.S. stocks climbed at the open, with the S&P 500 rising 0.9%, the Dow gaining 1.2% and the Nasdaq advancing 0.9%.
• Investors responded to renewed diplomatic efforts, which eased concerns about energy prices and inflation pressure.

Oil prices declined and U.S. stocks gained on Monday after a pause in fighting between the United States and Iran increased expectations that diplomatic efforts could continue.

Brent crude, the international benchmark, fell $6.35, or 6.6%, to $90.41 a barrel, while West Texas Intermediate, the U.S. benchmark, declined 5.7% to $84.23 a barrel.

“Oil’s sharp retreat at the Monday open did more than knock a few dollars off the barrel,” said Stephen Innes of SPI Asset Management, adding that the move reduced pressure across equities, currencies, bonds and central banks.

The decline followed a recent rise in oil prices above $100 a barrel, which pushed U.S. gasoline prices above $4 per gallon and increased concerns about higher inflation, while U.S. Ambassador to the United Nations Mike Waltz said the pause was intended to allow diplomacy more time.

U.S. stocks moved higher at the opening bell, with the S&P 500 rising 64 points, or 0.9%, to 7,475 points, the Dow Jones Industrial Average gaining 610 points, or 1.2%, and the Nasdaq Composite increasing 0.9%.

Global markets also gained as European and Asian stocks reacted to the reduced immediate pressure from energy prices and geopolitical concerns.

Investors continue to monitor inflation risks from energy prices and new tariffs, with expectations that the Federal Reserve will keep interest rates unchanged at its latest meeting while markets assess the possibility of future rate changes.