Stock markets across Asia rallied sharply on Wednesday as investors reacted positively to news of a two-week ceasefire between the United States and Iran, easing fears of a prolonged conflict that had rattled global markets. The announcement by U.S. President Donald Trump triggered a surge in equities while sending oil prices into a steep decline.
Japan’s Nikkei Stock Average jumped as much as 2,500 points, or 4.8%, during early trading, while the broader Tokyo Stock Price Index rose around 3%. In South Korea, the KOSPI surged more than 5%, reflecting widespread investor optimism across regional markets. Futures tied to major U.S. indices also climbed, with contracts linked to the Dow Jones Industrial Average rising over 2%, signaling expected gains on Wall Street.
The rally followed Trump’s announcement that Washington would suspend military strikes on Iran for two weeks, citing progress in negotiations. Posting on social media, Trump said the U.S. had received a 10-point proposal from Tehran that could serve as a “workable basis” for talks, marking a significant de-escalation after days of heightened tensions.
The agreement was reached just ahead of a deadline set by Trump, who had previously threatened to launch attacks on Iran’s critical infrastructure unless it reopened the strategically vital Strait of Hormuz. The waterway, which handles a significant portion of global oil shipments, had been effectively blocked, disrupting energy supplies and fueling volatility in global markets. The ceasefire is conditional on Iran restoring access through the strait.
Oil markets reacted immediately to the easing of tensions. West Texas Intermediate crude futures fell by around 15%, while Brent crude also dropped roughly 15%, sliding toward $90 per barrel. Despite the sharp decline, oil prices remain elevated compared to levels seen before the conflict began on February 28.
