Asian Stocks Hit Records as U.S.-Iran 60-Day Deal Sends Oil to $74.70
Updated
Updated · Reuters · Jun 18
Asian Stocks Hit Records as U.S.-Iran 60-Day Deal Sends Oil to $74.70
3 articles · Updated · Reuters · Jun 18
Summary
Japan’s Nikkei topped 71,000 for a fourth straight intraday record, South Korea’s KOSPI hit 9,000.68 and Taiwan touched 46,565.70 after Washington and Tehran signed an interim peace deal.
Brent fell 2.3% to $77.70 and U.S. crude dropped 2.7% to $74.70, a three-month low, as the agreement extended the April ceasefire by 60 days and restored full Strait of Hormuz shipping.
U.S. equity futures rose with Nasdaq 100 E-minis up 1%, while Euro Stoxx 50 futures slipped 0.7%, showing stronger risk appetite in Asia and the United States than in early Europe.
Trump still warned he could resume attacks and kill Iranian officials if Iran broke the deal, underscoring that the toll-free Hormuz transit period is temporary and the broader truce remains uncertain.
Lower oil prices have eased growth worries for energy importers, and the IEA said the market could swing into a significant supply surplus in 2027 after recovering from the strait’s closure.
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.