Asia-Pacific markets opened broadly higher on Monday in early trading, buoyed by reports that the United States and Iran had reached a peace deal to end the conflict in the Middle East.
By 11:35 am AEST (1:35 am GMT), Australia’s S&P/ASX 200 was up 1.3%, while Japan’s Nikkei 225 surged 5.1% to a fresh record high. South Korea’s KOSPI 200 also climbed sharply, rising 4.9%.
“The Deal with the Islamic Republic of Iran is now complete,” President Donald Trump said in a Truth Social post.
He added that the Strait of Hormuz would reopen without a toll system and that the United States would end its naval blockade.
In a later post, Trump said the strait would reopen on Friday, coinciding with the scheduled signing ceremony for the peace agreement in Switzerland.
“With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!” he said.
Energy markets reacted strongly to the developments. Brent crude for August delivery fell 4.3% to $83.59 per barrel, while U.S. West Texas Intermediate futures for July delivery dropped 5% to $80.62 per barrel.
On Friday in the United States, major benchmarks closed higher, with the Dow gaining 0.7%, the S&P 500 adding 0.5%, and the Nasdaq rising 0.3%.
Among commodity markets on Friday, ICE Brent crude settled down 3.4% at $87.33 per barrel, while spot gold was unchanged at $4,213.43 per ounce.
In China, equities advanced on Friday, with the SSE Composite Index up 1.1% to 4,031.5 and the CSI 300 gaining 1.2% to 4,777.3.
Hong Kong’s Hang Seng Index rose 1.9% to 24,718.1, while India’s BSE Sensex added 2.3% to 75,528.0.
European markets also finished higher on Friday, with the UK’s FTSE 100 up 1.6% to 10,471.7, Germany’s DAX rising 1.8% to 24,635.3, and France’s CAC 40 also gaining 1.8% to 8,350.9.
