War in Iran Ends: Stocks Surge, Oil Prices Crash

BANGKOK (AP) — A tentative deal to end the war with Iran and reopen the Strait of Hormuz sent Asian stock markets soaring on Monday. Oil prices fell sharply. Tokyo’s Nikkei 225 jumped 5.4%, and Seoul’s Kospi surged 4.9%. U.S. futures pointed to a higher opening on Wall Street. The price of Brent crude oil, the international standard, fell nearly $4 a barrel. The U.S. benchmark crude dropped more than $4. U.S. President Donald Trump confirmed the agreement and ordered the end of the U.S. naval blockade of Iranian ports. A formal signing is expected Friday in Switzerland. Broader talks on Iran’s nuclear program will continue for the next 60 days. Experts warn that oil prices may take months to stabilize. Shipping and insurance companies need to be sure the deal will hold. "The reopening of Hormuz is a relief valve, not a full peace dividend," said Stephen Innes of SPI Asset Management. "The market can remove some crude panic, but it still has to price the gap between a headline, a signature, and a regime that actually complies." The news was a huge relief for markets that have been unstable since the conflict began in late February. Buying was strongest for technology shares, especially those related to artificial intelligence. Japan’s benchmark index has gained more than 80% in the last year, driven by the AI boom. “This is great news,” said Takashi Hiroki, chief strategist at Monex. “Buying by foreign investors is leading the market with expectations of easing tensions around the situation in the Middle East.” In other Asian markets, Hong Kong’s Hang Seng rose 0.6%, and the Shanghai Composite index was up 1.1%. Australia’s S&P/ASX 200 advanced 1.4%. This week, the U.S. Federal Reserve, the Bank of England, and the Bank of Japan will announce their latest interest rate decisions.