Oil prices fall, stocks rally as US, Iran sign framework to end war

Brent crude drops as much as 1.6 percent, while key stock indices in Japan, South Korea and Taiwan climb.Oil prices have dropped following the United States and Iran’s signing of an interim peace agreement, resuming a slide interrupted by US President Donald Trump’s warning that he could restart his military campaign.Brent crude fell as much as 1.6 percent on Thursday morning in Asia, returning the international benchmark to almost exactly where it was 24 hours previously.Recommended Stories list of 4 itemslist 1 of 4Diplomat confirms that US and Iran have signed MoU electronicallylist 2 of 4Trump to Netanyahu: Use a ‘softer’ touch on Lebanonlist 3 of 4Trump says it’s ‘unfair’ for Iran to lack ballistic missileslist 4 of 4US transfers immigrants out of Florida Alligator Alcatraz detention centreend of listBrent futures for delivery in August stood at $78.43 as of 02:00 GMT, only about 7 percent higher than before the US and Israel launched their war on Iran on February 28.After several days of declines, Brent briefly spiked above $81 a barrel on Wednesday after Trump warned that the US could “go right back to dropping bombs” on Iran if it doesn’t “behave”.Asia’s main stock markets opened higher on renewed optimism for an end to nearly four months of disruption to global energy supply chains.Japan’s benchmark Nikkei 225 rose 1.9 percent in early trading, hitting an all-time high.South Korea’s Kospi gained more than 1 percent, while Taiwan’s Taiex rose about 1.3 percent.Hong Kong’s Hang Seng Index bucked the trend, dropping 1.7 percent.US stock futures, which are traded outside of regular market hours and often foreshadow the next day’s performance, climbed, with those tied to the benchmark S&P 500 and the tech-heavy Nasdaq Composite climbing about 0.8 percent and 1.3 percent, respectively.A man walks next to an electronic quotation board displaying the Nikkei 225 stock prices on the Tokyo Stock Exchange in Tokyo, Japan, on June 18, 2026 [Kazuhiro Nogi/AFP]Pakistani Prime Minister Shehbaz Sharif, who mediated the negotiations between Washington and Tehran, said on Wednesday that the US-Iran memorandum of understanding (MoU) had entered into force with “immediate effect”.