Wall Street Cheers as Iran War Deal Sparks Market Gains and Lower Oil Prices
BANGKOK — Share prices soared across Asia on Monday after the United States and Iran announced a tentative agreement to end the war and reopen the Strait of Hormuz. The news sent oil prices tumbling more than $4 a barrel and set Wall Street up for early gains.
Tokyo’s Nikkei 225 jumped 5.4 percent to a record high, while Seoul’s Kospi surged 4.9 percent. Futures for the S&P 500 and Dow Jones Industrial Average each rose about 1 percent, signaling a strong open later Monday.
US President Donald Trump confirmed the initial deal and authorized an end to the naval blockade of Iranian ports. Iran confirmed the agreement but said implementation would not begin until a formal signing, scheduled for Friday in Switzerland. Broader negotiations on Iran’s nuclear program are expected to continue over the next 60 days.
Brent crude oil, the international standard, fell $3.61 to $83.64 per barrel. US benchmark crude dropped $4.27 to $80.61 per barrel. However, analysts warned that shipping and insurance companies will want lasting assurances before declaring oil flows fully stable.
“Markets are likely to be cautious in not over-extending optimism as they watch for an actual resumption of traffic across Hormuz,” Mizuho Bank analysts said.
Technology shares, particularly those tied to artificial intelligence, led the buying spree in Japan. The Nikkei has gained more than 80 percent over the past year, driven by the AI boom. “This is great news,” said Takashi Hiroki, chief strategist at Monex. “Buying by foreign investors is leading the market with expectations of easing tensions.”
The dollar rose slightly to 160.20 yen, while the euro climbed to $1.1595.
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