Oil prices dropped below $100 a barrel while stock markets advanced on expectations that the United States and Iran may reach a peace agreement. Brent crude, the main global benchmark, declined 5.5 percent to just under $98 a barrel, its lowest point in two weeks. Hopes center on ending the conflict involving the United States, Israel, and Iran. The two sides continue to differ on major points, including Iran’s restrictions on the Strait of Hormuz. That waterway’s closure had pushed energy costs sharply higher after initial missile strikes on Tehran at the end of February. Analysts noted that similar talks have collapsed before, so markets are likely to remain cautious. Japan’s Nikkei index gained nearly 3 percent, and the pan-European Stoxx 600 rose 0.8 percent. Several markets, including those in the United States and Britain, were closed for a holiday. The dollar eased 0.25 percent against a basket of major currencies, while the pound climbed 0.5 percent to $1.3492. Higher oil and gas costs have increased inflation concerns worldwide and shifted expectations toward possible interest-rate increases rather than cuts.
