Asia Markets Rally After U.S.-Iran Deal, Oil Slides Sharply

Asian equities jumped and oil prices fell after the announcement of a peace agreement between the United States and Iran. In Seoul, the Kospi surged 5.6%, while Tokyo's Nikkei rose 5.3%. Elsewhere in the region, Shanghai gained 0.9%, Shenzhen advanced 2.6%, and Hong Kong's Hang Seng added 0.4%.

Pakistani Prime Minister Shehbaz Sharif said overnight that Iran and the United States had agreed to a deal and that both sides announced an immediate and permanent end to military operations on all fronts. He said the formal signing ceremony will take place on Friday, June 19, in Switzerland. Pakistan acted as mediator between the two countries.

President Donald Trump wrote on Truth Social that the agreement with the Islamic Republic of Iran was now complete, including reopening the Strait of Hormuz without a toll system and ending the U.S. naval blockade on Iran. “Ships of the world, start your engines,” Trump said. “Let the oil flow!” Iranian television also announced that the deal had been completed.

Oil markets reacted sharply. WTI crude fell 5.1% to $80.5 a barrel, and Brent dropped 4.5% to $83.4 a barrel. In Japan, SoftBank jumped 12.6%. In South Korea, Samsung rose 5.1% and SK Hynix climbed 7%.