Asian stock markets surged on Monday after the United States and Iran announced a peace agreement, ending months of conflict that had disrupted global oil supplies and rattled investors. Benchmarks in Tokyo and Seoul each jumped more than 5% in early trading, while oil prices fell more than $3 a barrel, offering immediate relief to an energy market that had been sent into turmoil by the war.
In Tokyo, the Nikkei 225 gained 5.1% to 69,367.06, while South Korea’s Kospi led regional gains, surging 5.6% to 8,577.62. Australia’s S&P/ASX 200 advanced 1.4% to 8,930.50, and Taiwan’s Taiex climbed 2.6%. Futures for the S&P 500 pointed to a 1% gain at the open, and Dow Jones Industrial Average futures were up 0.8%, suggesting Wall Street would also open higher.
“Asian stocks surge after US and Iran announce peace deal, reopening Strait of Hormuz.”
The deal was confirmed by US President Donald Trump and Pakistan’s Prime Minister Shehbaz Sharif, who said both sides “have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.” Trump announced that the Strait of Hormuz – a strategic waterway for oil shipments – was now reopened, and authorized an end to the US naval blockade of Iranian ports. “Ships of the world, start your engines,” he wrote on Truth Social. “Let the oil flow!”
The formal signing ceremony is scheduled for Friday 19 June in Switzerland, Sharif said. The agreement came after days of tense speculation, including Israeli strikes on Beirut that threatened to derail peace talks and prompted Iranian officials to vow revenge. Trump had said the deal was “scheduled to get signed tomorrow” on Truth Social, but Iran’s Foreign Ministry spokesman Esmaeil Baghaei urged caution, saying Iran needed to “remain cautious.”
Despite the ceasefire, it may take months for oil prices to fully stabilise after the war drove them sharply higher, pushing up the cost of gasoline and many other products. For now, however, the news provided a huge relief for markets that had been roiled by the conflict.