Stock Markets Gain as Brent Crude Eases to $100 on US–Iran Diplomacy Hopes

Indian equity benchmarks rallied sharply on Wednesday, with the Sensex surging over 940 points in intraday trade and the Nifty crossing the 24,300 level , as falling crude oil prices and renewed optimism over progress in US–Iran negotiations lifted global risk sentiment.

Markets extended gains after reports suggested that the United States and Iran are working on a possible draft framework or memorandum of understanding aimed at de-escalating tensions and moving toward a broader peace settlement. The development triggered a sharp fall in global crude oil prices, easing concerns over supply disruptions through the Strait of Hormuz , a critical global energy route.

Brent crude declined sharply, slipping to around the $100–102 per barrel range , as traders priced in easing geopolitical risk and the possibility of improved oil flow conditions. Sentiment was further supported after Washington reportedly paused elements of its “Project Freedom” naval escort operation , signaling reduced immediate escalation risks in the region.

US President Donald Trump said there had been “great progress” in talks with Iran, while earlier comments from US officials indicated that military objectives under Operation Epic Fury had been achieved, with a preference now shifting toward diplomatic resolution.

Global markets mirrored the upbeat tone. US stock futures extended gains , European equities traded higher, and Asian markets rallied broadly on improved risk appetite. In Japan, technology stocks advanced on continued enthusiasm around artificial intelligence (AI) adoption and semiconductor demand , supporting gains in the Nikkei and reinforcing strength in global tech shares.

In India, the rally was broad-based. InterGlobe Aviation, Mahindra & Mahindra, Trent, Bajaj Finance, Bajaj Finserv, and Tech Mahindra led the gains, while selective profit booking was seen in Larsen & Toubro, Hindustan Unilever, NTPC, and Power Grid .

Broader markets also strengthened, with midcap and smallcap indices outperforming, reflecting improved investor risk appetite. The rupee opened slightly stronger, aided by the decline in crude oil prices, which typically eases inflation and import cost pressures for India.