Global Markets Rally and Oil Prices Plunge Following Historic US-Iran Ceasefire Agreement
Stock markets across the Asia-Pacific region and US futures surged on Monday morning while crude oil prices dropped by over 4% after US President Donald Trump and Iranian officials officially confirmed an agreement to end the war and reopen critical trade routes.
The official announcement of a ceasefire agreement between Washington and Tehran has triggered an immediate and rapid surge across Asia-Pacific stock markets, fueled by widespread investor optimism. Following US President Donald Trump’s Sunday announcement on Truth Social—which confirmed the fee-free reopening of the Strait of Hormuz and the lifting of the US Navy blockade on Iranian ports—global financial indicators responded dynamically. Upon Monday's opening, Japan’s Nikkei 225 jumped over 5%, South Korea’s KOSPI advanced 5.7%, Taiwan’s Taiex climbed 2.7%, and Australia’s ASX 200 rose by approximately 1.5%. This positive momentum extended to overnight US futures, with the S&P 500 and Nasdaq Composite futures gaining 1% and 1.6%, respectively. Conversely, the global oil benchmark, Brent Crude, tumbled by more than 4%. Financial experts, including Khun Goh, Head of Asia Research at ANZ, noted that while the markets had partially anticipated the move following previous presidential signals, the official confirmation from both President Trump and Iranian authorities—specifically Iran's Supreme National Security Council and Deputy Foreign Minister Kazem Garabadi—has substantially boosted confidence. Analysts suggest that declining oil prices will ease inflationary pressures and provide relief to central banks globally, turning all eyes toward the US Federal Reserve's upcoming interest rate decision this week as supply chains prepare to normalize.