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NEW YORK — Global stock markets rallied on Wednesday as oil prices dropped sharply amid signs of progress toward a deal between the United States and Iran that could allow crude shipments to resume through the Strait of Hormuz. Brent crude, the international benchmark, fell 7.5 percent to US$101.75 a barrel, down from more than US$115 earlier in the week, after U.S. President Donald Trump said the narrow but strategically vital waterway could be “OPEN TO ALL” if Iran accepts an agreement he did not detail. The conflict in the region has blocked tankers from exiting the Persian Gulf, straining global supplies and adding to inflation pressures worldwide. A potential reopening has eased concerns about energy costs and helped drive gains in equities and other risk assets. NEW YORK — The S&P 500 rose 1.2 percent toward another record, the Dow Jones Industrial Average gained about 580 points, and the Nasdaq composite climbed 1.5 percent, while markets in Seoul, London and Paris also advanced sharply. Shares of major technology and artificial-intelligence focused companies including AMD, Super Micro Computer and Nvidia jumped after reporting stronger-than-expected earnings, and travel and leisure firms such as United Airlines, Carnival and Royal Caribbean rose on hopes of lower fuel expenses. Treasury yields fell as easing oil prices reduced pressure on inflation, with the 10-year yield slipping to 4.35 percent from 4.43 percent, a move that can lower borrowing costs for households and businesses and further support financial markets.

Prepared by Christopher Adams and reviewed by editorial team.