Deal hopes ease Iran war shock across oil and stock markets

Hopes of a possible deal to ease the Iran war sent oil prices lower and lifted global stocks, as investors bet that a diplomatic breakthrough could reduce pressure on energy supplies, inflation and major Asian importers.

Oil fell after President Donald Trump said the final points of a deal with Tehran had been approved by “all parties,” signaling that a preliminary agreement could extend the fragile ceasefire and reopen the Strait of Hormuz.

Brent and US crude both slipped, with prices near two-month lows after weeks of war-driven volatility. Brent crude was around $89 a barrel on Friday, while US WTI crude was about $86.50 a barrel.

The move eased immediate fears for economies heavily dependent on imported energy, especially Japan, South Korea and Taiwan, whose markets rallied sharply. South Korea’s Kospi surged nearly 8%, while Japan’s Nikkei gained more than 3%, helped by relief over energy risks and continuing enthusiasm for chipmakers tied to artificial intelligence.

The market reaction also reflected expectations that lower oil prices could reduce inflation pressure after the Iran war pushed energy costs higher.

Analysts cautioned that markets remain vulnerable because Trump had issued earlier threats of renewed strikes before shifting toward talk of a deal, and Tehran’s final position was still unclear. Iran’s foreign ministry said it had not reached a final conclusion on the agreement.