Global stock markets surged Monday after an agreement between the United States and Iran to end their conflict eased fears of further instability in the Middle East and triggered a sharp decline in oil prices.

Benchmark Brent crude fell 4.8 per cent to US$83.18 a barrel, retreating from levels near US$100 reached during the height of tensions. Before the conflict began, crude prices had been trading around US$70 a barrel.

 The Dow Jones Industrial Average rose about 650 points in afternoon trading, while the S&P 500 advanced 1.5 per cent and the Nasdaq Composite climbed 2.3 per cent.

Companies with high fuel costs were among the biggest beneficiaries of the drop in oil prices. Shares of United Airlines gained 5.2 per cent, while American Airlines rose 7 per cent. Cruise operator Carnival Corporation & plc added 5.7 per cent.