Key global financial news headlines from overnight include:
1. US stock markets were closed for the Memorial Day holiday. 2. Iran is set to reopen the Strait of Hormuz 30 days after a peace agreement is reached. 3. Senior Iranian representatives are in discussions with Qatar's Prime Minister regarding a potential peace deal. 4. The European Union plans to impose a fine of up to hundreds of millions of euros on Google. 5. US officials highlighted progress on a deal to reopen the Strait of Hormuz, leading to a decline in WTI and Brent crude prices. 6. European stock markets advanced on hopes of an Iran agreement.
US stock markets were closed on Monday, May 25th, in observance of the Memorial Day holiday. Due to the holiday, trading for ICE Brent crude futures concluded early at 01:30 Beijing time on the 26th. CME precious metals and US crude oil futures trading ended early at 02:30 Beijing time, while equity index futures trading ceased at 01:00 Beijing time. Memorial Day, originally observed on May 30th, is now held on the last Monday of May in most US states to ensure a federal holiday for employees.
A Middle Eastern diplomatic source stated that the US and Iran are discussing a plan to reopen the Strait of Hormuz approximately 30 days after reaching an agreement to end hostilities. During this 30-day window following a deal, Iran would proceed with clearing mines from the strait. Subsequently, vessels would be able to pass through freely and safely, and Iran would cease collecting transit fees. A ceasefire agreement reached in early April will be extended by 60 days, with plans to hold consultations on Iran's nuclear program during this two-month buffer period.
An informed official said on Monday that Iran's chief negotiator and foreign minister have arrived in Doha to meet with Qatar's Prime Minister to discuss a potential agreement with the US to end the three-month-long war. This follows recent downplaying of hopes for an immediate breakthrough by both Washington and Tehran. US Secretary of State Rubio earlier told reporters in New Delhi that the US would exhaust all diplomatic efforts before considering "other ways" to address Iran. Rubio stated, "There is a fairly solid proposal on the table involving Iran's ability to open the Strait of Hormuz, keep it clear, and engage in very practical, significant, and time-bound negotiations on the nuclear issue, with the hope that we can successfully reach an agreement."
Sources from the European Commission indicated that the EU is planning to fine Google, a subsidiary of Alphabet, up to hundreds of millions of euros as part of an antitrust investigation. Reports suggest the decision is nearing completion and is expected to be formally announced before the summer recess, adding that this would be the highest penalty imposed by the EU for violations of the new Digital Markets Act. The investigation, formally launched in March 2025, aims to address concerns that Google favors its own services in search results and to ensure the world's most popular internet search engine complies with local regulations.
WTI crude oil briefly fell below $90 per barrel for the first time in nearly three weeks, as signs emerged that the US and Iran are making progress toward an agreement to reopen the Strait of Hormuz. US President Donald Trump stated on Monday that negotiations with Iran over a provisional agreement to extend the ceasefire and reopen the strait are "proceeding smoothly." Trump's remarks, made in a post on Truth Social, further indicate that the US and Iran are nearing a deal. Pakistan's Army Chief Asim Munir, a key mediator between the warring parties, said an agreement is "close."
European stock markets rose as oil prices declined, with the US and Iran moving closer to a deal to end the war. Italy's stock market hit a record high. The Euro Stoxx 50 index advanced, erasing losses incurred since the outbreak of the Iran war in late February, before paring some gains to close up 2%. The Stoxx 600 index rose 1%, marking its sixth consecutive day of gains and its longest winning streak since October. Energy stocks underperformed as Brent crude fell as much as 6.4% to $96.90 per barrel. Italy's benchmark FTSE MIB index broke through its historical closing high set in 2000, driven by recent strong gains in energy and chip stocks, closing up 1.4%.
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