UK-listed mining and aviation stocks moved higher on Monday after the United States and Iran announced a peace agreement designed to end hostilities in the Middle East and pave the way for the reopening of the Strait of Hormuz.
The development triggered a sharp decline in oil prices, boosting investor sentiment toward sectors that stand to benefit from lower energy costs and improved global economic conditions.
Crude Prices Slide on Prospects of Restored Supply
Brent crude fell more than 5%, moving toward $82 per barrel, while U.S. West Texas Intermediate dropped by over 5% to around $80 per barrel.
The sell-off followed comments from U.S. President Donald Trump indicating that energy exports from the Persian Gulf could soon resume, alongside the removal of a U.S. blockade affecting Iranian ports.
Markets interpreted the announcement as a significant step toward restoring oil flows through one of the world’s most strategically important shipping routes.
Iran Confirms Agreement
Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that an agreement had been reached and said the full text would be released following a formal signing ceremony in Switzerland.
Reports suggest the arrangement also includes measures relating to Iran’s nuclear programme, as well as economic incentives linked to Tehran’s compliance with the terms of the deal.
Hormuz Reopening Eases Supply Concerns
Global energy markets have experienced significant disruption since the conflict began in late February.
According to Trading Economics, the near-closure of the Strait of Hormuz affected roughly one-fifth of worldwide oil shipments, raising concerns over supply security and contributing to elevated crude prices throughout the conflict.
The prospect of a reopening has therefore been welcomed by investors seeking greater stability in global energy markets.
Mining Stocks Lead Gains
Mining companies were among the strongest performers on the London market as commodity-linked shares attracted buying interest.
Fresnillo (LSE:FRES), Endeavour Mining (LSE:EDV) and Anglo American (LSE:AAL) all traded higher, posting gains ranging between 1.8% and 6.9%.
The sector benefited from improved risk appetite and expectations that easing geopolitical tensions could support broader economic activity.
Airline Sector Benefits from Lower Fuel Costs
Airline stocks also advanced as falling oil prices improved the outlook for fuel expenses, one of the industry’s largest operating costs.
Wizz Air (LSE:WIZZ), Jet2 (LSE:JET2) and EasyJet (LSE:EZJ) gained between 1.4% and 6.2% as of 04:48 ET (08:48 GMT).
Investors viewed the decline in crude prices as a positive development for airline profitability, particularly if lower energy costs are sustained in the months ahead.
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