Stocks leap, oil prices drop on US-Iran tentative deal

Stock markets are rallying worldwide on Monday, and oil prices are easing after the United States and Iran reached a tentative deal to extend their ceasefire and reopen the Strait of Hormuz to get the global flow of crude going again.

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The S&P 500 rose 1.9% on hopes that this time, the announcement of an Iran-U.S. agreement will mean a long-term fix to a conflict that has worsened inflation around the world. The Dow Jones Industrial Average was up 719 points, or 1.4%, as of 12:20 p.m. Eastern time, and the Nasdaq composite was 3% higher.

Stocks got a lift after the price for a barrel of Brent crude oil fell $5.48 to $82.61, back to where it was in early March. While that's still higher than its price of roughly $70 from before the war more than three months ago, it's lower than the $100 plus it cost just a few weeks ago. The hope is that lower oil prices will take pressure off households and businesses, which have had to pay higher prices for everything from food to fuel to fertilizer because of the war with Iran.

Iran confirmed the agreement but signaled its implementation would not start until it’s signed, which Pakistan said would happen Friday in Switzerland. Broader negotiations on issues like Iran's nuclear program are expected to continue over the next 60 days. That leaves opportunity for hiccups that could derail the agreement. And even if the deal does reopen the Strait of Hormuz, it will take months for the energy industry to get back to full speed.