Brent Crude Fell Below $89.50 A Barrel On Hopes For A Hormuz Reopening As Trump Told Reporters In The Oval Office “We Just Made A Great Settlement Of The War With Iran” While Iran’s Foreign Ministry Said Only That A Memorandum Of Understanding Is “Under Consideration”
According to Al Jazeera, stock markets surged following US President Donald Trump’s announcement that he called off planned strikes against Iran and a peace deal with Tehran is imminent.
Wall Street’s benchmark S&P 500 index finished nearly 1.8 percent higher on Thursday, ending a three-day streak of losses for the biggest single-day gain since April. The tech-focused Nasdaq Composite jumped 2.5 percent, while the Dow Jones Industrial Average gained about 1.9 percent.
The rally continued in the Asia Pacific on Friday, with markets in Japan, South Korea, Taiwan, Hong Kong, and Australia racking up gains. South Korea’s Kospi surged more than 8 percent in morning trading, while Japan’s Nikkei 225 rose as much as 4 percent. Taiwan’s TAIEX gained about 2.4 percent, and Australia’s ASX 200 rose about 1.8 percent. Brent crude fell about 1 percent to below $89.50 a barrel on hopes for a return to normality in the Strait of Hormuz.
Trump told reporters in the Oval Office: “We just made a great settlement of the war with Iran… subject to finalisation of documents.” Iran has not publicly confirmed Trump’s claims, but a Ministry of Foreign Affairs spokesman said a memorandum of understanding with the US is “under consideration.”
Khoon Goh, head of Asia research for ANZ Bank, told Al Jazeera: “For the rally to be sustained, investors will want to not only see the actual deal being signed, but a complete reopening of the Strait of Hormuz. Only then will we see the gains extend.”
Fabien Yip, market analyst at IG Group Sydney, attributed the rally to a “meaningful easing of geopolitical risk” and anticipation of Friday’s SpaceX IPO debut, describing the market movement as “a healthy reset after a rapid, near-straight-line advance, the kind of consolidation that can potentially extend a rally’s longevity.”
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