Asian stock markets rallied Friday as a peace deal reopened the Strait of Hormuz, lowering oil prices and easing inflation fears. Japan's Nikkei hit a record high, while South Korea's index surged, though analysts warn of future transit fees.
Oil prices experienced volatility following US Vice President JD Vance's comments questioning Israel's actions against Hezbollah, raising concerns about the Middle East peace deal's stability. Brent crude fell 0.65% to $79.33 and WTI crude dropped 0.46% to $75.50.
The US has lifted its naval blockade on Iran after the two nations signed a deal to end the regional war. The agreement includes an immediate halt to military operations and the reopening of the Strait of Hormuz. Iran's Supreme Leader expressed reservations but allowed the deal to proceed.
Asian stocks were mixed, with Japan's Nikkei hitting a record high, while oil prices fell as investors assessed a new interim peace deal between the US and Iran. The deal extends a ceasefire by 60 days, but US President Trump issued a warning to Iran. Concerns about inflation and potential Fed rate hikes impacted Wall Street overnight.
US and UK central banks are anticipated to maintain current interest rates this week. A recent Middle East peace deal is expected to reduce inflationary pressures, influencing these decisions. The Fed's new chair, Kevin Warsh, will be closely watched for his inflation outlook.
A framework agreement between the US and Iran to end the Middle East war has triggered global market euphoria. Spain's Ibex 35 index reached an all-time high, and the Strait of Hormuz reopened, causing oil prices to drop and boosting sectors like tourism and banking.
The US and Iran are exploring a potential agreement to end the Middle East war, but significant disagreements persist on nuclear issues, the Strait of Hormuz, sanctions, and the conflict in Lebanon.
European stock markets opened higher on Monday, boosted by falling oil prices amid hopes for a peace deal to end the Middle East conflict. Paris, Frankfurt, and Milan saw gains as traders reacted to potential de-escalation in the Strait of Hormuz.
France's energy aid package, spanning three months, will not be revoked even if the war in the Middle East ends, stated Energy Minister Maud Bregon. The government is committed to supporting citizens and businesses through continued energy price impacts.
Iran has submitted a new peace proposal to end the Middle East war, mediated by Pakistan and shared with the US. While details are scarce, reports suggest concessions on Iran's nuclear program and oil sanctions. However, rhetoric remains defiant, and US-Israeli airstrikes continue in Lebanon.
