Global Stocks Edge Up, Oil Prices Fall on Hopes for Strait of Hormuz Reopening

Global stock markets experienced modest gains as falling oil prices contributed to lower bond yields, driven by optimism surrounding a potential reopening of the Strait of Hormuz. Brent crude futures dropped over 2% to $86.45 per barrel following reports that Iran restarted talks with Oman to manage the vital shipping lane, which could increase global oil supply. This development also led to a decline in short-term bond yields, with the 2-year German bond yield falling over 2 basis points.