Asian stocks rallied Monday, with Tokyo and Seoul benchmarks rising more than 5%, after a US-Iran deal raised hopes for reopening the Strait of Hormuz.
Brent crude, the international benchmark, fell $3.45 to $83.88 a barrel in early trading. US crude dropped $3.95 to $80.93 a barrel.
Benchmarks in Tokyo, Seoul gain over 5% as oil prices fall by more than $3 a barrel. News comes as huge relief for markets roiled since conflict began in late February
Tokyo and Seoul gained more than 5 percent early Monday. Oil prices fell more than $3 a barrel. The future for the S&P 500 was up 1 percent and that for the Dow Jones Industrial Average gained 0.8 percent, auguring early gains for Wall Street.
US President Donald Trump confirmed the initial agreement and authorised an end to the US naval blockade of Iranian ports.
Iran confirmed the agreement but said it would not begin implementation until officials signed it, which Pakistan said would happen Friday in Switzerland. Negotiators will continue broader talks on issues such as Iran’s nuclear program over the next 60 days.
In early trading on Monday, the price of Brent crude oil, the international standard, fell $3.45 to $83.88 per barrel. US benchmark crude lost $3.95 to $80.93 per barrel. Energy experts said shipping and insurance companies will want confidence that the pact will hold, allowing oil and gas suppliers to meet the world’s needs.
Read: Asia Markets Rally As Oil Slides On US-Iran Deal
The deal to end the war offers relief to the global economy, more than three months after fighting began. Stocks rallied in Asia, where Tokyo’s Nikkei 225 gained 5.1 percent to 69,367.06 as the benchmark logged another record high. The Kospi in Seoul led regional gains, surging 5.6 percent to 8,577.62.
In Australia, the S&P/ASX 200 advanced 1.4 per cent to 8,930.50. Taiwan’s Taiex was up 2.6 percent.
Asian Markets Monday Session
| Equity Index | Country/Region | Index Level | Session Change (%) |
| Kospi | South Korea | 8,577.62 | +5.6% |
| Nikkei 225 | Japan | 69,367.06 (Record High) | +5.1% |
| Taiex | Taiwan | — | +2.6% |
| S&P/ASX 200 | Australia | 8,930.50 | +1.4% |
Market Context: The steep multi-per cent gains across international stock indices directly correlate with crude oil prices sliding by more than $3.00 per barrel, which significantly diminished inflationary risk premiums for import-heavy economies like Japan and South Korea.
United States Markets Prior Session Close
| Equity Index / Security | Session Change (% / Points) | Key Driver |
| Dow Jones Industrial Avg. | +0.7% (+353 points) | Crude price drop relief |
| S&P 500 | +0.5% | Marks 10 winning weeks out of 11 |
| Nasdaq Composite | +0.3% | Supported by tech and energy shifts |
| SpaceX | Substantial Gain | Highly anticipated Wall Street trading debut |
