Asian Stocks Hold Firm as US-Iran Peace Deal Extends Ceasefire 60 Days, Oil Falls
Updated
Updated · Reuters · Jun 18
Asian Stocks Hold Firm as US-Iran Peace Deal Extends Ceasefire 60 Days, Oil Falls
3 articles · Updated · Reuters · Jun 18
Summary
Asian equities were broadly steady after Washington and Tehran signed an interim peace deal that extends their April ceasefire by 60 days, while U.S. crude fell 1.25% to $75.83 and Brent dropped 1.4% to $78.41.
Trump's warning that attacks could resume if Iran breaches the accord kept geopolitical risk in focus, limiting the market relief from progress toward ending the Middle East war.
Japan's Nikkei broke above 71,000 for the first time on semiconductor and AI gains, South Korea's shares rose 0.9%, and S&P 500 futures added 0.81%.
That resilience followed a Wall Street selloff of roughly 1% across major indexes after Fed Chair Kevin Warsh and other policymakers signaled rates could still rise later this year.
The dollar traded near a July 2024 high at 160.65 yen ahead of the Bank of England decision, while the IEA said the oil market could swing into a significant supply surplus in 2027.
The Iran deal has cooled oil prices, but is the market truly prepared for a $180 barrel shock if the truce fails?
Will the Fed's war on inflation trigger a recession before the U.S.-Iran peace deal can stabilize the global economy?
As AI stocks fuel a market rally in Japan, are investors ignoring the hidden credit risks AI poses to the financial system?
"After the Guns Fall Silent: The 60-Day US-Iran Ceasefire, Strait of Hormuz Reopening, and the Precarious Path to Lasting Peace"
Overview
In June 2026, a ceasefire between the U.S. and Iran brought immediate relief to global markets after months of turmoil. The conflict began with U.S. and Israeli strikes against Iran in late February, leading Iran to close the Strait of Hormuz. This closure caused a daily shortfall of about 14 million barrels of crude oil, driving up energy prices and creating worldwide fuel shortages. Rising gas prices became a major political problem for President Trump, fueling public frustration ahead of the U.S. midterm elections. The ceasefire, based on a 60-day framework, now offers a temporary calm as both sides negotiate a lasting solution.