Hopes for a US-Iran agreement push oil prices down, Asian stock markets rise

Oil prices recorded a sharp decline this Monday, while financial markets in Asia rose significantly following signals of a possible peace agreement between the US and Iran.

US President Donald Trump stated that the agreement with Tehran is “largely negotiated,” although he later asked his negotiating team not to rush toward finalization.

In Asian markets, Brent crude oil fell by 5.5%, dropping to $97.90 per barrel, while US crude declined by 5.8%, to $90.99.

Hope for the reopening of Hormuz boosts Asian stock markets

Optimism over a possible agreement has also immediately affected Asian stock markets. Japan’s Nikkei 225 index rose by 2.9%, surpassing the historic level of 65,000 points for the first time. Investors are reacting positively to the possibility of reopening the Strait of Hormuz, the strategic route through which around 20% of the world’s oil and liquefied natural gas supply passes.

Japan and South Korea are considered among the countries most affected by the crisis, as they depend heavily on energy supplies coming from the Persian Gulf.

Trump: The agreement is close, but it should not be rushed

Trump said he held talks with the leaders of Saudi Arabia, United Arab Emirates, and Qatar regarding a “Memorandum of Understanding related to peace.” He added that the final details of the agreement are being discussed and will be made public soon.

However, the US president changed his tone a day later, stressing on Truth Social that “both sides need to take their time and do it properly.”

Iran warns: No agreement yet on key issues

Meanwhile, Iranian Foreign Ministry spokesperson Esmaeil Baqaei stated that the positions between the US and Iran have moved closer in recent weeks, but warned that there is still no agreement on the main issues. He also accused Washington of making “contradictory statements.”

War affected global energy markets

Since the start of the conflict at the end of February, global energy markets have experienced strong fluctuations. Iran threatened attacks on ships passing through the Strait of Hormuz, while attacks on Israel and US-allied countries in the Persian Gulf increased tensions in the region.

Although oil prices fell sharply today, they still remain higher compared to the period before the war, when Brent crude was trading at around $70 per barrel.

Energy expert Saul Kavonic stated that there is “light at the end of the tunnel” for the markets, but warned that the full normalization of global oil supplies could take until 2027.

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