Asian Stocks Surge on US-Iran Ceasefire, Hormuz Reopening

Asian stock markets surged Wednesday morning following the announcement of a two-week ceasefire between the United States and Iran, which includes the conditional reopening of the Strait of Hormuz, a vital shipping route for global oil supplies. The agreement, brokered by Pakistan, came just before a U.S. deadline for potential military action and eased fears of further escalation in the conflict that began in late February.

Late Tuesday, U.S. President Donald Trump stated he was suspending plans to target Iranian civilian infrastructure, such as power plants and bridges, after Iran agreed to pause military operations and allow safe passage through the strait for the duration of the truce. Iranian Foreign Minister Abbas Araghchi confirmed the arrangement, noting that passage would occur under coordination with Iranian armed forces, provided no attacks took place. The deal aims to address the strait’s closure since the war’s outset, which has trapped around 800 ships in the Gulf and disrupted flows of oil, gas, and commodities like fertilizer and helium to major importers in Asia.

The news triggered sharp declines in oil prices, with Brent crude falling more than 13 percent to...