After Trump Signs Iran Deal, Stocks Rise & Oil Falls – Europe Market Wrap

US equity futures advanced while oil prices fell as early signs emerged that energy flows through the Strait of Hormuz were beginning to normalize, reinforcing optimism after Trump signed a preliminary agreement aimed at ending the Middle East conflict.

S&P 500 futures rose 0.7% and Nasdaq 100 futures gained 1.4%, recovering part of Wednesday’s losses following the Fed’s hawkish hold. Technology shares led the advance, with Intel surging more than 8% in premarket trading after Trump said the company had reached a chipmaking agreement with Apple.

Brent crude declined 1.4% to around $78.50/bbl, its lowest level since the conflict began. The move came after several Saudi-controlled oil tankers resumed transmitting signals in the Gulf of Oman, suggesting some shipments may soon resume through the Strait of Hormuz. The easing supply concerns have continued to unwind the geopolitical premium previously embedded in crude markets.

Despite the decline in oil prices, front-end bond yields remained elevated as traders reinforced expectations for a September Fed rate hike. US two-year Treasury yields held near their highest levels since February 2025, while the Dollar extended gains.

In the UK, two-year gilt yields rose 6 bps to 4.2% after the BoE left interest rates unchanged and reiterated that it “stands ready to act” if inflation pressures persist. The decision highlighted the growing focus among major central banks on inflation risks despite signs of easing energy prices.

The Fed left rates unchanged for a fourth consecutive meeting on Wednesday. Policymakers described economic growth as solid, citing strong productivity gains and business investment, while emphasizing that inflation has become a greater concern than labor-market weakness. Markets now await further guidance from Powell’s successor, Warsh, on the path of policy tightening.