Asian Markets Rally as US-Iran Deal Reopens Hormuz Strait

Japan’s Nikkei climbed to a fourth consecutive intraday record high, while South Korea’s KOSPI breached the 9,000 threshold for the first time. The rally was fueled by renewed investor appetite for technology and semiconductor stocks, as the easing of energy-related inflation fears shifted capital back toward growth-oriented assets. Brent and U.S. crude futures tumbled to multi-month lows, reflecting a rapid repricing of supply risk by traders who now anticipate a potential surplus if maritime traffic remains consistent.

Despite the immediate optimism, the underlying geopolitical tension remains unresolved. The current agreement functions as a temporary stopgap, with the threat of military action lingering should negotiations fail over the next two months. Market participants remain cautious, acknowledging that any disruption to the diplomatic process could quickly reverse these gains. For now, the stability of the Strait—a vital artery for global energy—serves as the primary anchor for investor confidence, providing major energy-importing nations in Asia a reprieve from rising fuel and transportation costs.