Oil Prices Drop, Markets Rise as US, Iran Agree to Ceasefire Extension

Oil prices declined and global equity markets advanced on May 29, 2026, after reports that the United States and Iran had agreed in principle to extend their ceasefire, fueling optimism for a sustained de-escalation in the Middle East conflict. Crude futures retreated on the news, reversing recent gains tied to supply disruption fears. The agreement in principle aims to reduce regional hostilities that had contributed to elevated risk premiums in commodity markets. Investor sentiment turned broadly positive, lifting major indices, as the potential for lower energy costs and reduced geopolitical uncertainty bolstered risk appetite. Further details of the accord were not immediately available.