Brent crude fell below $100 a barrel as markets reacted to tentative diplomatic efforts aimed at resolving the Middle East conflict. The decline followed reports that the U.S. presented Iran with a 15-point plan to end the war, raising hopes for a negotiated settlement. Oil prices had been under pressure due to concerns about supply disruptions through the Strait of Hormuz.

Stocks jumped alongside the oil price decline, reflecting growing optimism that diplomatic channels could ease regional tensions. The U.S. proposal reportedly addresses key security concerns while seeking to reduce the risk of further escalation. Iran's reported willingness to allow 'nonhostile' vessels to pass through the strait also contributed to the market's more positive sentiment.

International mediators are pushing for a meeting between the parties on Thursday, though the path to resolution remains uncertain. The Strait of Hormuz, through which roughly 20% of global oil supplies pass, has been a focal point of market anxiety. If successful, diplomatic efforts could stabilize energy markets and reduce volatility in commodity prices.