Global stocks soar and oil plunges over 5% as US and Iran reach historic peace deal to end four-month war
Global financial markets surged today following confirmation that the United States and Iran have reached a deal to end their four-month war, with stock indices climbing sharply across Asia whilst oil prices tumbled to their lowest level in three months.
The agreement, which calls for the immediate cessation of military operations and the reopening of the Strait of Hormuz, sent ripples of relief through global trading floors.
Japan’s Nikkei 225 soared 5. 5 per cent in morning trading, whilst South Korea’s Kospi jumped as much as 5.7 per cent. Taiwan’s Taiex climbed 2.7 per cent and Australia’s ASX200 rose 1.5 per cent.
US stock futures also rallied strongly, with S&P 500 futures gaining approximately one per cent and Nasdaq 100 futures jumping 1.6 per cent ahead of the Wall Street open.
Oil markets responded dramatically to the peace announcement, with Brent crude falling more than four per cent towards $83 per barrel, whilst US crude oil futures dropped over five per cent to $80.
25 per barrel. Both benchmarks reached their lowest levels since 10th March, erasing months of war-related price increases that had threatened to fuel global inflation.
President Donald Trump announced that the deal was complete, authorising the toll-free reopening of the Strait of Hormuz and the immediate removal of the US naval blockade.
Pakistan Prime Minister Shehbaz Sharif, whose government brokered the agreement known as the Islamabad declaration, confirmed that an official signing ceremony will take place on Friday (19 June) in Switzerland.
The peace deal includes provisions for Iran to reaffirm its commitment to abstaining from nuclear weapons production, addressing one of Washington’s primary concerns throughout the conflict.
The Strait of Hormuz, which facilitates the transport of approximately one-fifth of global crude supply, had been closed since the war began in February, causing significant disruptions to energy markets.
Market analysts suggest the reopening of this critical waterway will ease supply concerns that have driven oil prices up by roughly 30 per cent since the conflict’s outset, though experts caution that a full return to pre-war price levels could take many months.
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