Asian shares rally after US and Iran say ceasefire deal is in place
Benchmarks in Japan and South Korea jumped Monday as Brent crude futures dropped after Washington and Tehran confirmed a deal to end the war.
By Daniel Okafor · Business Editor
2 min read
Asian stock markets rose sharply Monday after US and Iranian officials said they had agreed on a deal to end the US-Israel war on Iran, Al Jazeera reported. The announcement was followed by a fall in oil prices, with Brent crude futures down more than 4 percent, according to Al Jazeera.
Japan’s Nikkei 225 climbed 4.2 percent shortly after trading opened Monday, Al Jazeera reported. South Korea’s Kospi rose as much as 4.8 percent, according to the same report.
US President Donald Trump announced the ceasefire deal Sunday in a post on Truth Social, Al Jazeera reported. Trump said he had authorized the reopening of the Strait of Hormuz without tolls and ordered the immediate end of the US naval blockade of Iranian ports.
“Ships of the World, start your engines,” Trump wrote on Truth Social, according to Al Jazeera. “Let the oil flow!”
Iran later confirmed that an agreement had been completed, Al Jazeera reported. The broadcaster said Iran’s Supreme National Security Council and Iranian Deputy Minister of Foreign Affairs Kazem Gharibabadi said the sides had finalized the text of the deal.
Al Jazeera also reported that Pakistan said a “peace deal” between the United States and Iran had been reached. A breaking news update from the broadcaster said Iran stated that signing would take place on Friday.
The market reaction centered on two of the most closely watched indicators tied to the conflict: Asian equities and crude oil futures. Al Jazeera identified Brent crude as the main global oil price benchmark and reported that its futures fell more than 4 percent after the announcements.
The Nikkei move came days after a Reuters photo showed people in Tokyo walking beneath a monitor displaying the index, according to Al Jazeera’s image caption. The report said the gains in Japan and South Korea came shortly after markets opened on Monday.
Al Jazeera described the agreement as a deal between Washington and Tehran to end the US-Israel war on Iran. The broadcaster said more details were expected to follow.
This story draws on original reporting from Al Jazeera.