Stock markets soar, oil falls as US, Iran confirm deal to end war

Stock markets across the Asia-Pacific are surging following the announcement of a deal between Washington and Tehran to end the US-Israel war on Iran.

Japan’s Nikkei 225 benchmark index surged more than 5 percent shortly in morning trading on Monday, while South Korea’s Kospi jumped 5.7 percent.

Taiwan’s Taiex climbed 2.7 percent, while the ASX200 in Australia rose about 1.5 percent.

Futures for US stocks, which are traded outside of regular market hours, climbed, with those tied to the benchmark S&P500 and tech-focused Nasdaq Composite up about 1 percent and 1.6 percent, respectively.

Brent crude, the primary benchmark for global oil prices, fell more than 4 percent.

“While markets had already reacted late last week when President Trump indicated that a deal was close, actual confirmation spurred a further rally,” Khoon Goh, the head of Asia research for ANZ, told Al Jazeera.

“The fall in oil prices will provide some relief for central banks around the world who were worried about the inflation outlook. Focus now turns to the US Federal Reserve, which decides on interest rates this week.”

US President Donald Trump announced the ceasefire deal in a social media post on Sunday, saying he had authorised the toll-free reopening of the Strait of Hormuz and the immediate removal of the US naval blockade of Iranian ports.