Asia Markets Surge Iran Deal — Stocks Jump, Oil Falls as Peace Confirmed

Asia Markets – (Web Desk) – Asia markets surge Iran deal news sent shockwaves through financial markets on Monday as the United States and Iran confirmed a permanent peace agreement, lifting investor confidence and pushing oil prices sharply lower around the world.

Pakistan’s Prime Minister Shehbaz Sharif was among the first to announce the deal on social media. Shortly after, US President Donald Trump confirmed the agreement includes the reopening of the Strait of Hormuz — one of the world’s most important waterways for oil supply.

Iran later said that traffic through the strait would be managed by Iran and Oman together. That raised some concerns over possible shipping fees, but markets largely brushed aside the uncertainty.

Oil Prices Crash on Peace News

Brent crude oil fell around 4% to $83.80 a barrel — a sharp drop from its May peak of $126.41. US crude also slid to $81.23 a barrel. Analysts say sustained lower oil prices could ease inflation pressures globally, giving central banks more room to breathe.

“The prospect of a real and lasting drop in energy prices changes everything for central banks, especially with a flood of policy decisions coming this week,” said Sean Callow, a senior analyst at ITC Markets.

Stock Markets Jump Across Asia

Japan’s Nikkei futures climbed 2% to 68,685, well above Friday’s close of 66,020. S&P 500 futures rose 0.8% while Nasdaq futures jumped 1.4%. Investors across the board rushed into riskier assets as fear eased.

Several major central banks are meeting this week, including those of the United States, United Kingdom, Japan, Australia, Switzerland, Sweden, Norway, and Russia. Japan is seen as the most likely to raise rates.

The US Federal Reserve is expected to hold rates at 3.50%–3.75% on Wednesday. It will be Chair Kevin Warsh’s first meeting, and markets will closely watch every word for clues about future policy direction.

The Bank of England is also expected to keep rates steady at 3.75% on Thursday. Analysts say lower oil prices reduce pressure on the BoE to act quickly.

Dollar Falls, Gold Rises

The US dollar weakened broadly. The euro gained 0.4% against the dollar, while sterling added 0.3%. Gold, which benefits when yields fall, jumped 1.4% to $4,280 an ounce — a clear sign investors are feeling more optimistic but still cautious.