Asian stock markets jumped Monday after news of a ceasefire between the US and Iran, trying to end hostilities tied to US-Israel tensions. Japan's Nikkei 225 index shot up over 5 percent in morning trade,South Korea's Kospi leaped 5.7 percent. Taiwan's Taiex climbed 2.7 percent,Australia's ASX200 added about 1.5 percent . In Hong Kong,Hang Seng Index gained around 1 percent.
US stock futures also moved up,with S&P 500 and Nasdaq Composite contracts rising 1 percent and 1.6 percent,respectively . This stock surge followed President Trump's announcement on social media, confirming deal and reopening Strait of Hormuz, key maritime route for global oil.
“Ships of the World,start your engines,” Trump wrote on Truth Social. “Let oil flow!”
Iran’s Supreme National Security Council and Deputy Foreign Minister Kazem Gharibabadi confirmed agreement too. Pakistani Prime Minister Shehbaz Sharif,whose government helped in negotiations,said official signing set for Friday in Switzerland.
Terms of agreement not yet public . Iranian news agency Mehr says it includes immediate ceasefire across several fronts,including Lebanon,and lifting sanctions on Iranian oil exports. If it works,deal could restore normal shipping in Strait of Hormuz,closed nearly four months due to Iranian threats,US naval blockade.
Blockade hit global energy hard,causing daily oil shortfall of about 14 million barrels. Analysts warn even with agreement,it may take weeks for energy flows to stabilize,considering logistical issues of clearing stranded ships,possible mines in area.
After announcement,Brent crude prices fell over 4 percent,settling around $83.70 per barrel. This drop might relieve central banks worldwide,which have struggled with inflation. Khoon Goh,head of Asia research for ANZ,said while markets reacted last week to potential deal,official confirmation sparked bigger rally.
As focus shifts to US Federal Reserve meeting on interest rates this week,market watchers hope new agreement will lead to more stable economy…
