Iran deal sends stocks soaring, oil prices tumbling
Markets in Asia surged Monday after agreement to end war and reopen shipping strait; Brent crude fell $3.45 a barrel.
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Share prices soared Monday across Asia after a deal was announced to end the Iran war and reopen the Strait of Hormuz, offering relief to markets roiled since fighting began in late February.
Benchmarks in Tokyo and Seoul gained more than 5% in early trading. Japan's Nikkei 225 surged 5.1% to 69,367.06, logging another record high. South Korea's Kospi led regional gains with a 5.6% jump to 8,577.62. Australia's S&P/ASX 200 advanced 1.4% to 8,930.50, and Taiwan's Taiex rose 2.6%.
U.S. President Donald Trump confirmed the initial agreement and authorized an end to the U.S. naval blockade of Iranian ports. The price of Brent crude oil fell $3.45 to $83.88 per barrel, while U.S. benchmark crude lost $3.95 to $80.93 per barrel.
Iran confirmed the agreement but signaled implementation won't start until a signing ceremony Friday in Switzerland. Broader negotiations on issues like Iran's nuclear program are expected to continue over the next 60 days.
Futures for the S&P 500 were up 1% and the Dow Jones Industrial Average gained 0.8%, pointing to early gains for Wall Street. Energy experts cautioned that it may take months for oil prices to stabilize after war-driven disruptions, as shipping and insurance companies will want confidence the pact will hold before resuming full supply flows.