Stock markets across Asia surged Monday after an agreement was reached to bring the Iran war to an end and restore access through the Strait of Hormuz.
Major indexes in Tokyo and Seoul each climbed more than 5% in early trading, while oil prices dropped by more than $3 a barrel. U.S. futures also reflected optimism, with the S&P 500 futures rising 1% and Dow Jones Industrial Average futures gaining 0.8%, signaling a positive open for Wall Street.
U.S. President Donald Trump confirmed the initial agreement and authorized an end to the U.S. naval blockade of Iranian ports. However, analysts caution that oil prices could take months to fully stabilize, as the wartime disruptions drove costs sharply higher for gasoline and numerous other goods.
Despite that uncertainty, financial markets responded with clear relief after months of turbulence caused by the conflict.
In Tokyo, the Nikkei 225 jumped 5.1% to close at 69,367.06. Seoul’s Kospi led the region with a 5.6% gain, reaching 8,577.62. Australia’s S&P/ASX 200 rose 1.4% to 8,930.50, and Taiwan’s Taiex climbed 2.6%.
U.S. markets had already been trending upward heading into the weekend. On Friday, the S&P 500 added 0.5%, closing out its 10th winning week in the past 11. The Dow Jones Industrial Average climbed 353 points, or 0.7%, while the Nasdaq composite edged up 0.3%. Stocks were also boosted Friday by another drop in oil prices and a highly anticipated Wall Street debut by SpaceX.
The peace agreement brings hope to the global economy more than three months after fighting first broke out, though specific terms of the deal have not yet been made public. Iran confirmed the agreement but indicated that formal implementation would not begin until a signing ceremony, which Pakistan said will take place Friday in Switzerland.
Wider negotiations — including discussions around Iran’s nuclear program — are expected to continue over the next 60 days.
