Stocks in Asia, Europe, and the US are sharply higher on Monday after the U.S. and Iran reached a preliminary deal expected to reopen the Strait of Hormuz by the end of the week. Oil prices dropped sharply after the news, with front-month Brent futures down 5% to $82 per barrel.

The imminent reopening of the Strait of Hormuz has revived optimism that Gulf energy flows can begin to normalize, potentially easing global supply shortages and eventually allowing governments to replenish depleted strategic petroleum reserves.