Asian markets surge as US-Iran deal ends conflict, eases oil fears

WEB DESK: Asian stock markets rallied sharply on Monday following the announcement of a framework agreement between the United States and Iran to end their conflict and reopen the Strait of Hormuz.

The pact, reached after weeks of back-channel diplomacy, is expected to immediately restore safe passage for oil tankers through the vital waterway.

Markets reacted with relief as the agreement removes a major source of geopolitical uncertainty that had rattled investors for days.

Analysts believe the deal could also pave the way for a gradual easing of sanctions and renewed trade flows in the region.

Oil prices tumble on restored supply outlook

Investors welcomed the news as it removed a major geopolitical risk that had threatened global energy supplies, sending oil prices lower and boosting sentiment across equities.

Tokyo’s benchmark Nikkei 225 jumped 5.5pc in early trading, while South Korea’s KOSPI composite index rose as much as 5.7pc. Taiwan’s Taiex gained up to 2.7pc, Australia’s ASX 200 climbed around 1.5pc, and Hong Kong’s Hang Seng Index initially advanced by about 1 per cent before paring some gains, according to Al Jazeera.

The positive momentum extended to US stock futures, with S&P 500 futures up 1pc, Nasdaq futures rising 1.8pc, and Dow Jones futures gaining 0.8 per cent in Asian hours.

Brent crude fell about 4.5pc, dropping below $83.40 a barrel as concerns over potential disruptions in the Strait of Hormuz eased significantly.

The waterway is a critical chokepoint for global oil shipments, and its reopening is expected to alleviate supply pressures that had weighed on the world economy.

Analysts said the deal marks a significant de-escalation in the Middle East, potentially paving the way for a broader recovery in global trade and energy markets.

However, some cautioned that implementation risks remain, and markets will closely monitor developments in the coming days.

The surge reflects renewed investor confidence in risk assets amid reduced uncertainty over energy prices and geopolitical stability.