Stock markets soar, oil falls as US, Iran confirm deal to end war

Washington and Tehran Reach Agreement, Asian Stock Markets React Positively

A deal between Washington and Tehran has been announced, marking an end to hostilities between the two nations. As a result, stock markets across the Asia-Pacific region have seen significant gains.

In Japan, the Nikkei 225 benchmark index rose by over 5% in morning trading on Monday, while South Korea’s Kospi jumped 5.7%. Taiwan’s Taiex also saw a notable increase of 2.7%, and Australia’s ASX200 rose about 1.5%.

Futures for US stocks, which are traded outside of regular market hours, showed gains of around 1% for the S&P500 and 1.6% for the Nasdaq Composite.

The agreement has led to a decline in global oil prices, with Brent crude falling by more than 4%. This development is expected to provide relief for central banks worldwide, which had been concerned about inflation outlooks.

According to Khoon Goh, head of Asia research at ANZ, markets had already reacted positively when President Trump indicated that a deal was close. The actual confirmation of the agreement has sparked further gains.

The US Federal Reserve will meet this week to decide on interest rates. As the focus shifts to this meeting, investors are closely watching developments in the region.

Source: Al Jazeera