Markets Celebrate US-Iran Agreement

Global markets witnessed a strong upward surge at the start of the week, driven by an announcement of an agreement between the United States and Iran to end the war and reopen the Strait of Hormuz, which bolstered investor risk appetite and led to broad-based equity gains amid a sharp decline in oil prices. US futures led the gains, with the Dow Jones, S&P 500, and Nasdaq indices at the forefront, while Asian and European markets posted sharp rises, led by Japan’s Nikkei 225, South Korea’s KOSPI, Germany’s DAX, and France’s CAC 40, reflecting a global reversal toward geopolitical optimism.

Conversely, oil prices fell by approximately 5% under pressure from expectations of stable supplies, negatively impacting energy sector stocks, while automotive, aviation, and travel sectors benefited from improving economic conditions. Markets this week are awaiting key economic data from the United States and a Federal Reserve meeting, alongside continued momentum in technology and artificial intelligence stocks following SpaceX’s landmark initial public offering, underscoring ongoing market volatility between political optimism and economic anticipation.

Global markets welcomed the US-Iran agreement aimed at ending hostilities, hoping for the actual reopening of the Strait of Hormuz to international shipping. Asian and Pacific markets rose on Monday, with South Korea’s KOSPI index leading regional gains with a 5.38% increase, while the KOSDAQ index for small-cap companies remained flat. Japan’s Nikkei 225 rose by 4.92%, and the TOPIX index climbed by 3.19%. Australia’s S&P/ASX 200 index increased by 2.62%.

US stock futures rose as the shortened trading week began due to a holiday, following President Donald Trump’s announcement of an agreement to end the war between the United States and Iran. Futures linked to the Dow Jones Industrial Average increased by 0.97%. Futures for the S&P 500 index rose by 1.26%, while futures for the Nasdaq 100 index jumped by 1.95%.