Global Markets Advanced 2% After Crude Oil Prices Dropped 6% On Hormuz Hopes

Barry Adams
25 May, 2026
New York City

Global markets continued to defy rising inflation risks and tightening supply conditions in the Middle East. 

U.S. indexes extended gains to the eighth week in a row, and U.S. Treasury yields inched higher amid growing expectations of global stagflation.

Stock markets in New York are closed on Monday to celebrate the Memorial Day holiday, and normal trading hours are scheduled to resume on Tuesday. 

Benchmark indexes in Europe, Japan, India, and China soared in Monday's trading after the crude oil prices eased. 

The Brent crude oil price dropped 6% to $97.28 a barrel after the U.S. president and Iran sent conflicting signals. 

Investors are hoping that the flow of energy products through the Strait of Hormuz is likely to pick up as the U.S.-Iran process appeared to move forward. 

Benchmark indexes in New York are set to move higher in Tuesday's trading, tracking Monday's sharp gains in Europe and Asia.

On the economic front, the U.S. housing market continued to remain weak amid elevated property prices, rising mortgage rates, and affordability issues because of the recent surge in inflation. 

 

U.S. Housing Market Faced Twin Headwinds In April

Private housing starts in April, adjusted for seasonal factors, rose to 1.45 million, an increase of 4.6% from a year ago but a decrease of 2.8% from the previous month's revised data. 

The starts for single-family homes declined 9% from the previous month and decreased 2.4% from a year ago, as mortgage rates and construction costs continued to rise.

The seasonally adjusted annual housing completion rate in April was 1.45 million, 4.8% above the revised March estimate but 2.0% below the rate in the month a year ago. 

Year-to-date housing completions, not adjusted for seasonal factors, held at 420,000, a decline of 11% from a year-ago period's 473,000, according to the report released on Thursday by the U.S. Census Bureau.