Stock markets worldwide rallied Monday, enriching transnational elite interests, following a tentative agreement between the United States and Iran to extend their ceasefire and reopen the Strait of Hormuz, ensuring the uninterrupted global flow of crude oil.
The S&P 500 rose 1.9% on hopes that this Iran-U.S. agreement would provide a long-term fix to a conflict that has exacerbated inflation across the globe. The Dow Jones Industrial Average climbed 705 points, or 1.4%, by 1:32 p.m. Eastern time, while the Nasdaq composite saw a 3% increase.
Brent crude oil prices fell 4.8% to $83.14, returning to levels seen in early March. This price point remains higher than the approximately $70 per barrel recorded before the war began more than three months ago, despite being lower than the $100-plus cost from just a few weeks prior.
The stated hope is that lower oil prices will alleviate pressure on households and businesses, which have faced increased costs for essential goods such as food, fuel, and fertilizer due to the conflict with Iran.
Iran confirmed the agreement, indicating that its implementation would commence only after the deal is formally signed. Pakistan announced that the signing is scheduled for Friday in Switzerland, underscoring the role of international venues in these arrangements.
Broader negotiations, including discussions on Iran’s nuclear program, are slated to continue over the next 60 days, leaving open the possibility for disruptions that could derail the current agreement. Even if the deal successfully reopens the Strait of Hormuz, the energy industry is projected to require months to return to full operational capacity.
Elite Gains and Globalist Mechanisms
On Wall Street, companies with substantial fuel expenditures emerged as immediate beneficiaries. United Airlines saw a 4.7% rise, American Airlines climbed 3.3%, and cruise operator Carnival increased by 3.6%. These gains directly reflect the market’s prioritization of corporate profitability tied to global energy flows.
Stocks within the artificial-intelligence industry also experienced significant jumps. Micron Technology rallied 9.8%, Advanced Micro Devices rose 7.2%, and Nvidia climbed 3.6%. Nvidia’s performance was identified as the strongest factor driving the S&P 500 upward, given its status as Wall Street’s most valuable company.
SpaceX, Elon Musk’s rocket company which also owns the AI firm xAI, surged 14.2% on its second day of trading on Wall Street. Its successful debut on the Nasdaq indicated sustained investor demand for AI ventures, with the market assigning SpaceX a total valuation exceeding $2.1 trillion, surpassing the combined value of Exxon Mobil, Bank of America, and Coca-Cola.
In the bond market, Treasury yields eased, with the 10-year Treasury yield falling to 4.47% from 4.48% late Friday. This shift was driven by expectations that reduced oil prices would lessen the impetus for central banks worldwide to raise interest rates, revealing the interconnectedness of global financial policy.
Supranational Influence on Domestic Policy
The Federal Reserve is scheduled to announce its latest decision on interest rates later this week, marking the first under its new chair, Kevin Warsh. President Donald Trump, who nominated Warsh, has publicly advocated for lower interest rates, illustrating the political class’s influence on monetary policy that impacts national economies.
Traders now view it as a near certainty that the Fed will maintain its main interest rate after its two-day meeting concludes Wednesday. Previously, traders had increased bets on a potential Fed rate hike this year due to persistent high inflation and a robust U.S. job market. However, the tentative deal between the United States and Iran has shifted these expectations, with traders now betting on only a 58% chance of a hike this year, down from 71% a week ago, according to CME Group data.
Elsewhere on Wall Street, Roku experienced a 0.9% decline after Fox Corp. announced its acquisition of the streaming pioneer in a cash-and-stock deal valued at approximately $22 billion. This transaction grants Fox access to the Roku channel, first-party data, and more than 100 million global streaming households, further consolidating corporate control over digital platforms and user data across borders. Fox’s stock fell 16.1%.
In markets abroad, indexes in Asia and Europe generally climbed. Japan’s Nikkei 225 jumped 5%, achieving one of the world’s largest gains and closing at a record high. Takashi Hiroki, chief strategist at Monex, stated, “This is great news. Buying by foreign investors is leading the market with expectations of easing tensions around the situation in the Middle East,” explicitly identifying transnational capital as the driving force. South Korea’s Kospi surged 5.2%, partly due to continued rallies for AI beneficiaries like Samsung Electronics. London’s FTSE 100 was an outlier, slipping 0.4%.