Oil falls and Asian markets rally on Iran peace hopes
Oil prices dropped sharply and Asian stocks rallied after Donald Trump unveiled a 15-point plan aimed at ending the Iran conflict.
Brent crude fell more than 4% to around $100 a barrel, while WTI dropped over 3% to roughly $89, as fears of supply disruption eased.
Equity markets across Asia responded positively. Japan’s Nikkei 225 jumped 2.9%, with strong gains also seen in South Korea’s Kospi (+1.7%), Hong Kong’s Hang Seng Index (+0.5%), and China’s Shanghai Composite (+1.2%). Australia’s S&P/ASX 200 rose 1.9%, while Taiwan’s Taiex climbed 2.5%.
The rally followed weakness on Wall Street, where the S&P 500 fell 0.37%, the Dow Jones Industrial Average slipped 0.18%, and the Nasdaq Composite dropped 0.84%.
Despite the improved tone, tensions remain elevated. The US is deploying additional troops to the region, while Iran has denied claims of productive talks and hostilities with Israel continue.
Bond markets reflect ongoing uncertainty, with UK 10-year yields holding near 5%, close to post-2008 highs, and US Treasury yields around 4.4%.
Markets are now being driven by the balance between geopolitical risk and hopes of a diplomatic breakthrough.
