Asian stocks rose sharply and oil prices fell in early trade on Wednesday after the United States and Iran agreed to a two-week ceasefire, with Tehran temporarily reopening the vital Strait of Hormuz.
On oil markets, the US crude benchmark West Texas Intermediate tumbled 16.56% to $96.39 per barrel, while Brent Crude was down 15.89% at $93.38.
On equities, Japan’s Nikkei 225 was up 4.38% at 55 771.56 points while in South Korea, the Kospi surged 5.71% to 5 808.65.
“As fears of an escalation in fighting dispelled, buying is likely to take the lead in the Japanese market,” Tokai Tokyo Securities said before the opening bell in Tokyo.
After more than a month of attacks by the United States and Israel, Iran said it had agreed to talks with Washington to begin Friday in Pakistan on a path to end the conflict.
“Subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” US President Donald Trump wrote on his Truth Social platform.
Iranian Foreign Minister Abbas Araghchi confirmed safe passage for two weeks for ships through the Strait of Hormuz, the gateway for one-fifth of the world’s oil which Tehran sealed off in retaliation for the war launched on 28 February.
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