Oil prices rose on Monday as stalled U.S.-Iran peace talks suggested ongoing disruptions in Middle East energy exports. Meanwhile, global stock markets remained stable at the start of a significant week for technology earnings and central bank meetings.
Brent crude futures increased nearly 3% at one point, reaching a three-week high of $108.50 per barrel. This surge heightened inflation concerns and led traders to largely eliminate the possibility of rate cuts in developed markets for the remainder of the year.
The MSCI All-World index saw a slight uptick, while Europe’s STOXX 600 index dipped by around 0.2%. In Asia, markets in Tokyo and Seoul climbed to near record highs, buoyed by renewed optimism surrounding artificial intelligence (AI). Conversely, Wall Street futures declined.
Michael Brown, senior research strategist at Pepperstone, stated, “It is an incredibly busy week ahead. Not only are we going to have inevitably another round of geopolitical headlines all over the place, we’ve also got five policy decisions across the G10, we’ve got five of the ‘magnificent 7’ (tech giants) reporting, and I think by market cap it’s about 45% of the S&P giving us results this week.”
Although a ceasefire has mostly halted fighting in the conflict sparked by U.S.-Israeli strikes on Iran two months ago, markets continue to be concerned about disruptions in the Strait of Hormuz, where oil and gas shipments have nearly ceased.
The future of the peace talks remains ambiguous. U.S. President Donald Trump stated that Iran only needs to call if it wishes to negotiate an end to the conflict. Iran’s foreign minister arrived in Russia on Monday to seek support from President Vladimir Putin.
Goldman Sachs analysts raised their year-end Brent oil price forecast to $90 per barrel from $80, attributing the change to an expected return to normal Gulf exports by June. The analysts cautioned, “Non-linear price increases are likely if inventories drop to critically low levels, which we have not seen in the last few decades.”
Rates and Hyperscaler Earnings
Equity investors attempted to navigate the oil market upheaval by refocusing on the technology sector and the growing trend of AI, which many perceive as a transformative force. Mike Seidenberg, senior portfolio manager for Allianz Technology Trust, remarked, “AI is something that people are very optimistic about and very much considered a winner. It’s the top of the portfolio.”
Intel’s optimistic forecast for second-quarter revenue last week exceeded Wall Street expectations and spurred renewed buying interest, elevating the total value of tech-heavy stock markets in Taiwan and South Korea above that of Germany.
In the upcoming week, U.S. tech earnings will include reports from companies constituting 44% of the S&P 500 by market capitalization. Investors will focus on capital expenditure plans from firms such as Microsoft, Alphabet, Amazon, and Meta Platforms, which are scheduled to report on Wednesday, while Apple will follow a day later.
Major central banks are anticipated to maintain their current policies this week, including the U.S. Federal Reserve, likely in its last meeting under Chairman Jerome Powell. The European Central Bank and Bank of England are also expected to keep their policies unchanged, although their communications could influence market expectations regarding potential rate hikes later this year.
The Bank of Japan will convene first, likely maintaining its short-term policy rate at 0.75% on Tuesday. In currency markets, the dollar was mostly stable on Monday, with the euro trading at $1.1746 and the Japanese yen hovering just below the key level of 160.
Published on April 27, 2026.
