Global stocks rally as oil falls to four-month low

Equity markets across the globe gained ground on Thursday as crude oil prices tumbled to their lowest levels in months, easing inflation fears and drawing buyers into stocks from Mumbai to London.

Brent crude fell for a third consecutive session, dropping below $71 a barrel after Qatar said that U.S.-Iran talks in Doha had made "positive progress" on matters related to the memorandum that halted the war in June, according to Reuters. The continued decline in oil prices — which have now returned to levels not seen since before the U.S.-Iran conflict erupted in late February — helped soothe worries about consumer prices and energy costs worldwide.reuters

India Leads Asian Gains

India's Sensex surged 579 points, or 0.75%, buoyed by the slide in crude prices to around $70 a barrel, according to the Economic Times. India, the world's third-largest oil importer, stands to benefit considerably from cheaper energy, and the rally was broad-based, with the Nifty 50 closing above 24,150. Information technology stocks led the charge, while midcap and smallcap indices also posted gains.moneycontrol+2

The rally came even as other parts of Asia struggled. South Korea's Kospi sank nearly 8% amid heavy selling in semiconductor stocks, and Japan's Nikkei 225 also fell sharply.economictimes

Philippine Peso and FTSE 100 Join the Rally

In the Philippines, the peso strengthened against the dollar, closing at around ₱61.565 to $1. The currency's gains reflected easing inflation concerns tied to lower oil import costs, a theme that Japanese financial giant MUFG Mitsubishi UFJ Financial Group, Inc. ↗ 0.00% expects to support the peso's gradual appreciation through the rest of 2026.mb+2

In London, the FTSE 100 rose 0.73% on Thursday, according to data from Investing.com, as the drop in oil prices helped improve broader investor sentiment across European markets.investing

Oil's Descent Anchors the Outlook

The decline in crude prices traces back to the U.S.-Iran ceasefire signed in June and the subsequent reopening of the Strait of Hormuz, which had been a chokepoint for global energy supplies during the conflict. Brent has now fallen more than 28% over the past month, according to Trading Economics, as fears of prolonged supply disruptions have faded. The Qatar Foreign Ministry said talks had yielded progress, though there was no indication the two sides had moved toward a lasting peace deal.aljazeera+3