# Stock markets rally as oil prices plunge amid Hormuz talks ahead of Fed meeting Easing tensions with Iran and potential Strait of Hormuz reopening boost market sentiment. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-07-27 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/bce75e6e-e0f0-4a41-8699-a8b6121fce8b ## Markets react positively to easing Iran tensions The reduction in tensions between the U.S. and Iran, along with negotiations to potentially reopen the Strait of Hormuz, created a positive atmosphere in global markets. Futures tied to the Dow Jones industrial average rose 0.65%, S&P 500 futures jumped 0.80%, and Nasdaq futures surged 1.28%. South Korea's Kospi index also gained 1.1%. The sharp drop in oil prices and rise in gold prices were other indicators of market activity. ## Hormuz negotiations drive oil prices down Diplomatic talks between the U.S. and Iran, as well as negotiations between Iran and Oman, raised hopes for freer vessel traffic in the Strait of Hormuz. As a result, U.S. crude oil prices fell 5.44% to $84.45 per barrel, while Brent crude dropped 5.25% to $91.70. This decline in oil prices could help alleviate global inflationary pressures. ## Signals of shift in U.S. Iran policy President Donald Trump's decision to halt military operations against Iran is being interpreted as a sign of strategic change. Assessments by U.S. Central Command about reaching the limits of operational effectiveness and warnings from the Chairman of the Joint Chiefs of Staff form the background of this policy shift. Ukraine's attack on an Iranian supply ship in the Caspian Sea is also being viewed as a new leverage point in diplomacy. ## Uncertainty ahead of Fed meeting The Federal Reserve's policy meeting this week will be a key focus for market participants. It remains uncertain whether the Fed, which has signaled a tougher stance on inflation, will raise interest rates. The rate decision could directly affect AI stocks, which have declined recently. Earnings reports from Microsoft, Meta, Apple, and Amazon this week will also shed light on the sector's future. ## AI investments and semiconductor sector Continued investments in artificial intelligence are increasing demand in the semiconductor sector. South Korean chipmakers like SK Hynix and Samsung have signed new deals to expand in the AI infrastructure market. SK Group Chairman Chey Tae Won revealed that AI developer Anthropic has requested supplies from SK Hynix to produce its own semiconductors. Samsung Electronics also secured a chip manufacturing contract worth over $200 billion for Broadcom. ## Critical situation in oil markets The decline in oil inventories to critical levels is increasing the risk of a crisis in global energy markets. Reports suggest U.S. President Trump is running out of options to ease tensions in the oil market. Reopening the Strait of Hormuz could alleviate supply bottlenecks and push prices even lower. However, recognizing Iran's control over the strait may not be acceptable to other regional countries. ## Military movements and diplomatic balance The U.S. deployment of additional troops and aircraft to the Middle East is seen as part of a strategy to keep military options on the table. However, the failure of 40 days of full-scale war and 13 days of limited strikes to reopen the Strait of Hormuz highlights the importance of diplomatic channels. Iran's potential retaliation capacity and dwindling U.S. missile defense stockpiles increase the risks of military options. ## Critical week for global markets This week will see several key developments for global markets, including the Fed's decision, earnings reports from tech giants, and Hormuz negotiations. The impact of falling oil prices on inflation and the performance of AI stocks are among investors' main concerns. If diplomatic progress continues positively, the current market rally could maintain its upward trend. ## Sources covering this story - https://fortune.com/2026/07/26/kospi-index-dow-futures-us-stocks-hormuz-talks-oil-prices-iran-war-fed-meeting/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._