Washington/Tehran – Web Desk: Global financial markets rallied sharply while oil prices tumbled following the announcement of a framework peace agreement between the United States and Iran, with investors welcoming the prospect of de-escalation in the Middle East and the reopening of the strategic Strait of Hormuz shipping route.
Brent crude, the international benchmark, fell approximately 2.4% to trade at $77.64 per barrel during Thursday’s Asian session, while US West Texas Intermediate dropped nearly 3% to $74.58. The decline comes after prices had already fallen more than 5% earlier in the week when the deal was first announced.
Asian stock markets posted significant gains. Japan’s Nikkei 225 index surged over 5% to reach a new record high, closing above 69,000 points for the first time in history. South Korea’s Kospi index jumped more than 5%, while Taiwan’s Taiex gained 1.3%. European markets also rose, with Frankfurt and Paris both climbing around 1.7%.
The agreement, electronically signed by both presidents, includes provisions for the immediate reopening of the Strait of Hormuz and the lifting of the US naval blockade. Iranian officials have indicated that management of the strait will be coordinated with Oman. Prime Minister Shehbaz Sharif, who played a key mediation role, announced that the ceasefire took effect immediately, with the formal signing ceremony scheduled for Friday in Switzerland.
Cautious Outlook from Experts
Despite the market euphoria, energy analysts have urged caution regarding the timeline for full recovery of shipping through the strategic waterway. Approximately 500 vessels remain stranded in and around the Persian Gulf, and experts estimate it could take up to 30 days simply to clear the backlog.
“The key point is that the strait may reopen quickly from a political or security perspective, but the commercial shipping system is likely to normalize gradually,” said Dimitris Ampatzidis, a maritime risk analyst at Kpler.
Shipping companies and insurers are expected to await confirmation of the agreement’s durability before resuming regular operations. Some analysts project it could take eight weeks or more for traffic to return to pre-war levels.
