Asian markets surge, oil slumps as US and Iran agree to two-week ceasefire

NEW DELHI: Asian stock markets spiked on Wednesday morning after the news of a two-week ceasefire between the United States and Iran. Oil prices fell sharply following the de-escalation of military tensions in the Middle East and the promised reopening of the Strait of Hormuz.

Japan’s Nikkei 225 led the rally with a 5.28 per cent surge, up by 2,822.44 points, while South Korea’s KOSPI rose 5.61 per cent or by 308.11 points. India’s GIFT NIFTY also climbed over 3 per cent to reach the 23,841.00 level. Other regional indices, including the Hang Seng and Taiwan Weighted, saw gains of 3.04 per cent or 763.47 points and 3.72 per cent or 1234.69 points, respectively.

The ceasefire triggered a massive sell-off in the energy sector. Brent Crude plummeted 13.04 per cent to trade at $95.02 per barrel at 7.24 am IST, while US crude oil dropped 13.76 per cent to $97.41 at the same time. On the other hand, Gold surged by 100.45 points or 2.13 per cent.

In what will bring relief to the world, the Iranian side has accepted US President Donald Trump’s peace overture and agreed to safe passage via the Strait of Hormuz for two weeks, as well as a pause in military operations. Iranian Foreign Minister Seyed Abbas Araghchi posted the Islamic Republic’s response on X and said Iran would cease its military operations if it was not attacked.

“On behalf of the Islamic Republic of Iran, I express gratitude and appreciation for my dear brothers HE Prime Minister of Pakistan Sharif and HE Field Marshal Munir for their tireless efforts to end the war in the region. In response to the brotherly request of PM Sharif in his tweet, and considering the request by the U.S. for negotiations based on its 15-point proposal as well as announcement by POTUS about acceptance of the general framework of Iran’s 10-point proposal as a basis for negotiations, I hereby declare on behalf of Iran’s Supreme National Security Council: If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations. For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces and with due consideration of technical limitations”, Araghchi wrote.

The two-week pause is likely to lead to further comprehensive negotiations between the US and Iran and a possible peace summit in Islamabad. Earlier, US President Donald Trump suspended the “bombing and attack” campaign on Iran, announcing a two-week double-sided ceasefire and saying that the 10-point proposal from Iran was workable.

In a post on Truth Social, Trump said that the ten-point proposal will serve as ground to negotiate for a permanent deal, while reiterating that the US has achieved most of its military objectives. (ANI)