By Our Correspondent

National News – Oil prices dropped sharply while global stock markets surged on Wednesday, following reports that the United States submitted a peace plan to Iran amid escalating Middle East tensions.

Tehran confirmed it would allow safe passage for “non-hostile” vessels through the strategic Strait of Hormuz, signaling a potential easing of the nearly four-week conflict that disrupted global energy supplies.

Investors responded to early signs of de-escalation, though analysts cautioned that the arrival of additional US troops in the region could still heighten tensions.

US President Donald Trump expressed optimism, describing Iran’s actions regarding the Strait of Hormuz as “an amazing present” and affirming ongoing negotiations.

According to reports, Washington proposed a 15-point plan via Pakistan, including a one-month ceasefire, discussions on Iran’s enriched uranium, and sanctions relief, with Tehran ensuring uninterrupted maritime trade.

The economic fallout from the conflict has begun affecting nations worldwide.

Vietnam raised diesel prices to $1.50 per litre, more than double since hostilities began, while the Philippines declared a national energy emergency.

Sri Lanka curtailed street lighting, and Bangladesh increased jet fuel costs by 79 percent.

Eurozone business activity slowed sharply, prompting France’s INSEE to lower growth forecasts.

Stock markets across Asia and Europe saw gains, with Tokyo’s Nikkei up 2.9% and London’s FTSE 100 rising 0.7%.

Meanwhile, Brent crude dipped below $100 per barrel, while West Texas Intermediate traded at $89.46.

Traders welcomed comments from International Energy Agency head Fatih Birol, indicating readiness to release additional oil reserves if required.

Experts warn that despite the encouraging developments, geopolitical risks remain, and energy prices could fluctuate depending on the outcome of ongoing talks.

Governments are increasingly focusing on reducing energy consumption to mitigate rising costs.