The price for a barrel of Brent crude delivered in June fell 3% to settle at $97.26. Hopes rose that a cooldown in fighting could allow oil and natural gas to flow more freely from the Persian Gulf to customers worldwide. Many oil tankers are currently stuck outside the Strait of Hormuz off Iran’s coast, and the blockage has sent Brent crude’s price to nearly $120 per barrel at times.

Financial markets have swung sharply since the war began over three weeks ago, with many reversals happening hour to hour as uncertainty lingers about its duration. On Wednesday, Iran's foreign minister Abbas Araghchi said on state TV that his government has not engaged in talks to end the war and has no plans for negotiations. Iran launched more attacks on Israel and Gulf Arab countries including one that sparked a huge fire at Kuwait International Airport while coming under attack itself. The U.S. military deployed paratroopers and more Marines to the region.

Gold rose through the war, climbing 3.4% to settle at $4,552.30 per ounce. Gold’s price had briefly gotten near $5,400 early this month. That was before Treasury yields rushed higher on worries that high oil prices would drive inflation upward and prevent the Federal Reserve from cutting interest rates.

Arm Holdings soared 16.4% after announcing chips for data centers and AI technology. Robinhood Markets rallied 5%, leading U.S. stocks, after authorizing a $1.5 billion stock buyback. Terns Pharmaceuticals rose 5.7% on Merck's $6.7 billion all-cash acquisition; Merck gained 2.6%.

On Holding slumped 11.2% after CEO Martin Hoffmann stepped down. Pop Mart International Group tumbled 22.5% despite profit and revenue growth, missing analyst expectations. Alphabet and Meta Platforms held steady, up 0.2% and 0.3%, after a jury found them liable in a lawsuit over harm to children from their platforms.

Optimism was nevertheless evident in financial markets worldwide. Stock indexes climbed more than 1% in London, Paris and Shanghai. Tokyo’s Nikkei 225 leaped 2.9%. Japan’s Nikkei 225 added 0.28% while the Topix rose 0.43%. South Korea’s Kospi slid 1.55% and the small-cap Kosdaq added 0.18%. Hong Kong’s Hang Seng index slid 0.52%, while the CSI 300 opened flat. European stocks ended Wednesday in positive territory as the U.S. reiterated efforts to de-escalate the war with Iran and Tehran said it may allow “non-hostile” vessels through the Straight of Hormuz. The pan-European Stoxx 600 closed the session almost 1.3% higher, with all major regional bourses in the green.

In the bond market, Treasury yields also eased. That could help soften the rise in rates for mortgages and other kinds of borrowing since the beginning of the war. That in turn could lessen the pressure on the economy. The yield on the 10-year Treasury fell to 4.32% from 4.39% late Tuesday, though it remains well above its 3.97% level from just before the war.