Oil Prices Plunge Amid U.S.-Iran Nuclear Deal Prospects

Oil prices dropped nearly 4% as potential U.S.-Iran nuclear deal promises to boost global crude supply. Stock markets paused after a recovery run, while volatility continues in currency and bond markets. Key questions center on geopolitical stability, impact on U.S.-China trade dynamics, and economic growth indicators.

Oil markets faced a significant drop, with prices tumbling nearly 4% as prospects of a U.S.-Iran nuclear deal suggest increased global crude supply. This development arrives as stock markets take a break from their recent recovery rally.

The potential deal, which could see Iran committing to not producing nuclear weapons and reducing uranium stockpiles, comes amidst U.S. President Donald Trump's tour of the Middle East, where he indicated progress in negotiations. This news sent Brent futures down over $2, below the $64 mark.

In addition to the oil market impact, European oil and gas stocks slipped, and bonds of oil-producing nations experienced a downturn. Economists express concerns over existing deflationary pressures in Europe and persistent trade tariff worries, highlighting ongoing market volatility and uncertainty in global economic stability.

(With inputs from agencies.)