US-Iran War Ends, Asian Stock Markets Surge

Tokyo. Immediately after the agreement to end the war between America and Iran, stock markets in the Asia-Pacific region have surged.

Stock market indices have risen rapidly due to the enthusiasm among investors following the official announcement of the agreement to end the war between Washington and Tehran.

As trading began on Monday morning, Japan's Nikkei 225 index rose by more than 5 percent, while South Korea's KOSPI rose by 5.7 percent. Similarly, Taiwan's Taiex rose by 2.7 percent and Australia's ASX 200 index rose by about 1.5 percent.

Positive effects have also been seen in US stock futures, which trade outside regular hours. Futures related to the S&P 500 and the technology-focused Nasdaq Composite index have risen by 1 percent and 1.6 percent, respectively.

While the stock market shows enthusiasm, the price of Brent Crude, considered the main benchmark for oil worldwide, has fallen by more than 4 percent. Khun Goh, Head of Asia Research at ANZ, said, 'The market had already reacted by the end of last week when President Trump signaled that a deal was near, but the official confirmation has further boosted the market.' He added that the fall in oil prices would provide some relief to central banks worldwide, 'The focus is now on the US Federal Reserve, which is set to make a decision on interest rates this week.'

US President Donald Trump announced the ceasefire agreement via social media on Sunday, stating that the decision has been made to open the Strait of Hormuz without fees and to immediately lift the US Navy blockade on Iranian ports. Trump wrote on Truth Social, 'Ships of the world, start your engines, let the oil flow.'

Iran's Supreme National Security Council and Iran's Deputy Foreign Minister Kazem Garabadi have also confirmed that the final agreement has been reached between both parties. Investors are more optimistic with the expectation that supply chains will resume and inflationary pressure on the global economy will decrease with the end of the war.