Global stocks were mixed Thursday as oil prices sank on optimism over a potential U.S.-Iran peace deal, even as the fate of the strategic Strait of Hormuz remains uncertain.
MSCI's All-Country World Index rose 0.17% near record highs, while Europe's STOXX 600 edged lower. Asian markets hit fresh highs, with Japan's Nikkei crossing 62,000 for the first time.
Brent crude fell nearly 3% to $98.3 a barrel, extending Wednesday's 8% plunge. Even after the drop, oil remains about 40% above pre-conflict levels.
Lombard Odier chief economist Samy Chaar noted the positive momentum, saying lower oil prices are relieving pressure on yields and supporting equity valuations.
The United States and Iran are reportedly moving toward a limited, temporary agreement. However, execution risks remain, as ATFX Global strategist Nick Twidale highlighted uncertainty about finalizing and implementing the deal.
S&P 500 companies are on track for their strongest profit growth in over four years, with solid reports from Samsung, SK Hynix, and TSMC reinforcing the upbeat tone.
Investors now await Friday's U.S. non-farm payrolls report, expecting a 62,000 job increase for April.
In currency markets, the euro and sterling edged higher, while the yen remained weak at 156.35 per dollar. Japan's top currency diplomat said the country faces no constraints on intervention frequency and maintains daily contact with U.S. authorities. Treasury Secretary Scott Bessent is due in Tokyo next week.