Stock markets throughout Asia experienced significant gains Thursday as traders expressed optimism about potential negotiations between the United States and Iran that could restore oil shipments through a crucial Persian Gulf waterway.
Tokyo’s Nikkei 225 soared 4.6% to reach 62,243.88, while Hong Kong’s Hang Seng climbed 1.2% to 26,531.35. Australia’s S&P/ASX 200 advanced 1.2% to 8,870.90.
South Korea’s Kospi declined 1.4% to 7,281.37 as investors took profits following the previous day’s nearly 7% surge that pushed the index above 7,000 for the first time. Taiwan’s Taiex rose 1.7%.
Global markets surged Wednesday after President Donald Trump announced the Strait of Hormuz could be “OPEN TO ALL” if Iran agrees to a proposed deal, though the president provided no specifics about the arrangement.
Oil prices dropped nearly 8% and the S&P 500 advanced 1.5% for its strongest performance in almost a month, reaching a new record. The Dow Jones Industrial Average rose 1.2%, while the Nasdaq composite gained 2%.
During early Asian trading Thursday, Brent crude increased $1.06 to $102.29 per barrel, and U.S. benchmark crude added $1.20 to $96.28 per barrel.
Wednesday’s market rally came amid speculation that Washington and Tehran are approaching an agreement to permit vessels to transport crude through the Strait of Hormuz.
Brent crude, the global benchmark, plummeted 7.8% to $101.27, down from over $115 earlier in the week.
The strait’s closure due to ongoing conflict has severely disrupted the world economy by preventing oil tankers from exiting the Persian Gulf. Reopening this vital passage could restore normal oil flow and ease inflationary pressures affecting product prices globally.
Brent crude initially dropped below $97 per barrel but recovered above $100 after Trump warned of bombing “at a much higher level and intensity” if Iran rejects the proposed agreement.
American stocks showed strength despite the conflict, supported by robust earnings from major corporations at the beginning of 2026.
Semiconductor company AMD led Wednesday’s gains with an 18.6% jump after exceeding profit and revenue expectations. CEO Lisa Su credited continued artificial intelligence growth, which requires massive computing power from data centers.
Super Micro Computer soared 24.5% following better-than-expected earnings results. Nvidia, the chip manufacturer synonymous with the AI revolution, increased 5.7% and provided the largest boost to the S&P 500 due to its massive market value.
CVS Health advanced 7.6% after reporting first-quarter results that beat analyst projections and raising full-year guidance. The Walt Disney Company gained 7.5% after stating that “Zootopia 2” helped attract customers to its streaming services, theme parks, and cruise operations while delivering stronger-than-anticipated profits. Uber Technologies climbed 8.5% after providing spring booking forecasts that exceeded analyst estimates.
Beyond earnings announcements, companies with substantial fuel costs rallied on expectations that oil prices would continue declining. United Airlines and Carnival each rose 6.8%, while Royal Caribbean jumped 8.8%.
Overall, the S&P 500 increased 105.90 points to 7,365.12. The Dow Jones Industrial Average added 612.34 points to 49,910.59, and the Nasdaq composite gained 512.82 points to 25,838.94.
