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

Oil prices have declined following the United States and Iran signing an interim peace agreement, brokered by Pakistan's Prime Minister Shehbaz Sharif. Brent crude dropped as much as 1.6 percent on Thursday morning in Asia, returning to levels seen prior to the conflict. This development has fueled optimism for an end to disruptions in global energy supply chains. Consequently, key Asian stock markets, including Japan's Nikkei 225, South Korea's Kospi, and Taiwan's Taiex, opened higher. US stock futures also climbed, indicating a positive outlook for the US market. The memorandum of understanding between the US and Iran entered into force with immediate effect.

Asian shares showed mixed performance on Wednesday, with oil prices trading below $80 a barrel, influenced by optimism surrounding an interim agreement between the U.S. and Iran to end their war. Tokyo's Nikkei 225 rose due to a surge in Japanese exports, while South Korea's Kospi saw losses in technology stocks. Hong Kong and Shanghai also experienced declines. Oil prices stabilized after a sharp drop, driven by hopes of a potential end to the conflict and the reopening of the Strait of Hormuz, though challenges remain regarding the deal's specifics. U.S. futures edged higher ahead of the Federal Reserve's policy decision, with expectations that interest rates will remain unchanged despite pressure for cuts. Wall Street closed mixed, with the Nasdaq composite pulled down by declines in AI-related tech stocks.