Oil prices fell sharply, sending U.S. equities onto a fresh all‑time high. Market watchers linked the decline to growing optimism about a U.S.–Iran peace agreement, which could ease geopolitical risk in the Persian Gulf.

Brent crude slid 11% last week, its worst weekly drop since March 2020, and declined 19% for the month. West Texas Intermediate fell 17% in May, tightening the oil‑price curve.

The slide lifted energy‑heavy shares, boosting the broader market to record levels. Investors now view lower fuel costs as a boost to consumer spending and corporate margins.

The rally underscores how geopolitical sentiment can eclipse supply‑side fundamentals, reshaping trading floors and investor portfolios alike.