European stock markets dropped after big gains the previous session, while leading Asian markets jumped

Global stocks mostly dropped Thursday as Washington awaited Tehran’s response to a US plan to end the Middle East war and reopen the Strait of Hormuz.

Crude oil declined sharply early in the session amid hopes for a peace deal that ends the strait disruption. But oil prices later cut losses.

The benchmark international oil contract Brent Crude finished just above $100 at $100.06 a barrel, down 1.2%.

Major US indices were in positive territory early in the day, but ended lower. Both the S&P 500 and Nasdaq pulled back from records.

I just think the market is a little tired here after a pretty extensive run since the end of March, said Tom Cahill of Ventura Wealth Management.

There are a lot of bits of information coming out with reference to what’s going on between Iran and the United States, Cahill said. So, I think the market right now is more focused on that than anything else.

Earlier, European stock markets dropped after big gains the previous session, while leading Asian markets jumped.

Tokyo surged 5.6%, which largely reflected resumption of trading in Japan after public holidays this week.

The wild streak of enthusiasm which hit markets amid hopes for a major de-escalation in the Iran conflict is tempering, noted Susannah Streeter, chief investment strategist at Wealth Club.

There’s a realization that there are more hurdles to climb for a longer-term resolution to be agreed, even though Iran is reported to be studying a US peace proposal aimed at formally ending the conflict, she added.

The war, launched by the US and Israel in late February, has seen Iran respond with attacks across the Middle East and impose a chokehold on the Strait of Hormuz, the gateway to the Gulf oil and gas industries and a strategic trade route.

Norway’s central bank on Thursday hiked its guiding rate by a quarter point to 4.25%, citing a risk that the war in the Middle East could worsen already elevated inflation.

Inflation is too high and has run above target for several years, Norges Bank governor Ida Wolden Bache said in a statement.