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As US President Donald Trump announced the Peace Deal framework that brings a closure to the crisis in the Middle East, Asian stocks cheered and rose significantly.
As of filing this report, Kyodo News reported that Japan's Nikkei had risen over 4% to set a intraday record high. Early reports saw Asia-Pac stocks jump at the opening as the Peace Deal opens up the critical Strait of Hormuz with South Korea's Kospi recording a jump of 4.3% Australian shares also jumped at open, the ASX200 was trading 125pts or 1.4% higher to 8,928 at the time of this report. Seven of 11 sectors on the Indice were higher, led by a rally in materials (+3.5%). Meanwhile, CNBC reported that U.S. crude oil futures for July delivery were down 4.77% to $80.83 per barrel by 8:27 p.m. Eastern. Brent futures, the international benchmark, for August delivery traded about 4% lower to $83.77 per barrel. US crude slid 4.3 per cent to US$81.23 a barrel. S&P 500 futures climbed 0.8 per cent, while Nasdaq futures jumped 1.4 per cent amid a general surge in risk assets. Nikkei futures rose 2 per cent to 68,685, far above Friday's cash close of 66,020. Earlier, United States President Donald Trump on Monday announced the completion of the peace deal between the US and Iran, declaring the reopening of the strategically important Strait of Hormuz and the immediate removal of its naval blockade, a move he said would restore the free flow of global energy supplies. In a post on Truth Social, Trump wrote, "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!" Iran's Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi also confirmed the peace deal and said that Tehran will enter a proposed 60-day negotiation period for a final agreement only after verifying Washington's commitments towards ending hostilities, lifting the blockade and releasing Iranian assets. According to Iran's state-affiliated Press TV, Gharibabadi said the official signing ceremony of the agreement will take place on Friday, after which the text of the Memorandum of Understanding will be made public. " The memorandum of understanding was not just a product of diplomacy, but is indebted to Iran's military achievements. It is indebted to the pure blood of the martyrs we gave in confronting the enemies of the establishment. After the official signing, the text of the memorandum of understanding will be published. On Friday, we will have an official signing, and the heads of the two delegations will hold discussions to determine the future arrangements for negotiations," Gharibabadi said. This peace deal brings closure to a conflict that had significantly affected economies of the world with the choking of Oil supplies through the Strait of Hormuz. Finally after 108 days the conflict is coming to an end bringing with it a sigh of relief and a sense of normalcy. (ANI)
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