Strait of Hormuz Opens, Stock Markets Soar, Oil Prices Plunge

Asia-Pacific stock markets surged after the announcement of a framework agreement to end the conflict between the United States, Israel, and Iran. Japan’s benchmark Nikkei 225 index soared 5.5 percent in morning trade on Monday (15/6/2026). Meanwhile, South Korea’s Kospi index jumped as much as 5.7 percent. Taiwan’s Taiex index strengthened up to 2.7 percent, while Australia’s ASX200 index rose around 1.5 percent. In Hong Kong, the Hang Seng Index initially gained about 1 percent before trimming most of its rise towards midday. US stock futures traded outside regular hours also strengthened. Contracts tied to the benchmark S&P 500 rose about 1 percent, while Nasdaq Composite contracts gained around 1.8 percent. On the other hand, Brent crude oil, the main global price benchmark, fell about 4.5 percent to below 83.40 US dollars per barrel. ANZ Head of Asia Research, Khoon Goh, said the market had actually been responding positively since last week when US President Donald Trump indicated a deal was near. “However, the official confirmation of the deal triggered a further rally in the market,” Goh said. According to him, the drop in oil prices will provide room for central banks in various countries that were previously worried about inflation prospects. “The market focus now shifts to the US Federal Reserve, which will decide on interest rates this week,” he said. US President Donald Trump on Sunday (14/6/2026) announced the achievement of a “deal” with Iran via a social media post. Trump stated he had authorised the reopening of the Strait of Hormuz at no additional cost and the immediate cessation of the US naval blockade of Iranian ports. “Let the oil flow,” Trump wrote in his post. Iran’s Supreme National Security Council later confirmed that both parties had finalised the final draft of a memorandum of understanding. Pakistani Prime Minister Shehbaz Sharif, whose government helped mediate the deal, said the official signing would take place in Switzerland on Friday. Official details of the deal have not yet been announced. However, Iranian news agency Mehr reported that the agreement includes the immediate cessation of all hostilities, including in Lebanon, the suspension of sanctions on Iranian oil sales, and the release of 24 billion US dollars in frozen Iranian assets. If successfully implemented, the deal will pave the way for the normalisation of shipping in the Strait of Hormuz. The strategic passage has suffered disruptions for nearly four months due to threats and attacks by Iran and the US naval blockade. According to the International Energy Agency (IEA), disruptions in the Strait of Hormuz reduced global oil supply by about 14 million barrels per day. This condition drove up world energy prices and triggered fuel shortages in several countries.