Oil drops, Asian stocks rally on US-Iran ceasefire
Oil prices plunged and Asian stock markets surged on Wednesday after the United States and Iran agreed to a two-week ceasefire and the reopening of the Strait of Hormuz.
US benchmark West Texas Intermediate fell more than 16 percent to $96.39 per barrel, while Brent crude dropped nearly 16 percent to $93.38, reflecting easing concerns over supply disruptions.
Equity markets reacted strongly, with Japan’s Nikkei 225 rising 4.38 percent and South Korea’s Kospi jumping 5.71 percent as investor confidence improved.
After weeks of conflict involving the US and Israel, Iran agreed to resume talks with Washington, set to begin in Pakistan on Friday.
Donald Trump said the US would suspend attacks if Iran ensured the immediate and safe reopening of Hormuz. Abbas Araghchi confirmed that safe passage for ships would be guaranteed for two weeks, easing fears over global oil supply disruptions.
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