Zawya: LONDON - Stocks leapt and ‌oil prices dropped on Wednesday after a report said the White House believed it was closing in on a memorandum to end the war with Iran, while momentum in AI-driven trades accelerated. The report by news outlet Axios said the U.S. expected Iranian responses on several key points in the next 48 hours. A Pakistani source involved in the peace efforts confirmed the report to Reuters on Wednesday.

Brent crude, the global benchmark, dropped 7.5% ⁠to $101.70 per barrel.

The Iran war has all but closed the Strait of Hormuz, through which 20% of global energy normally flows, so a peace deal could alleviate some of the pain for oil and gas markets.

Europe's STOXX 600 index extended its gains and was last up 2.1% after climbing 0.7% a day earlier. MSCI's All-Country ‌World Index ⁠climbed 0.9% to a ⁠fresh record. Futures for the U.S. S&P 500 rose 0.7%, a day after the index rallied 0.8% to hit its latest record high, driven by strong company earnings and excitement about artificial intelligence.

"It seems ‌equity investors are still looking to put money to work ⁠and are jumping on positive-sounding news from the Gulf," said Chris Turner, head of global markets at ING, responding to an earlier rise in shares after U.S. President Donald Trump touted progress in peace talks.

The U.S. dollar, which has been a safe haven during the Iran war, dropped 0.5% against its major peers, reflecting investor hopes about a possible deal.

Meanwhile, yields on government bonds fell along with oil prices as traders dialled down their bets on central bank rate hikes.

The 10-year U.S. Treasury yield fell 7 basis points to 4.35%.

The broadest index of Asia-Pacific shares outside Japan jumped 3.2%. The surge ‌was led by a 6.5% charge for South Korea's KOSPI, which reopened ⁠after a holiday. Samsung Electronics jumped 14%, topping a $1 trillion market value and overtaking Berkshire Hathaway .

"Due to the capex spend we are seeing from (AI) hyperscalers in the U.S., the earnings growth trajectory for sectors such as semiconductors, tech hardware, industrials and materials in Asia exceeds anything I have seen in a long time," ‌said Rushil Khanna, head of equity investments for Asia at Ostrum, an affiliate of ⁠Natixis Investment Managers.