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Emerging Markets Surge as Oil Retreats on US-Iran Diplomatic Progress

Emerging-market equities and currencies strengthened as crude oil prices declined following signals that Washington and Tehran are advancing toward a negotiated settlement. The potential accord could restore shipping through the Strait of Hormuz, a critical chokepoint for global energy supplies. Global stock indices approached record levels on the news, with the dollar weakening against major peers. Oil's pullback eased inflation concerns that have weighed on markets. The diplomatic momentum lifted sentiment across developing economies, which have faced headwinds from elevated energy costs and geopolitical uncertainty. Investors are betting that a reopening of Iranian oil exports would stabilize commodity markets and support economic growth in emerging regions dependent on affordable energy imports.