Stock markets have risen sharply after US President Donald Trump announced he had cancelled planned strikes against Iran. He also hinted that a peace deal with Iran could be close.
On Thursday, Wall Street’s S&P 500 index gained nearly 1.8 percent. This marked the biggest daily increase since April and ended three days of losses. The tech-focused Nasdaq Composite rose by 2.5 percent, and the Dow Jones Industrial Average increased by about 1.9 percent.
Asian markets continued to rise on Friday. In Japan, South Korea, Taiwan, Hong Kong, and Australia, gains were recorded. South Korea’s Kospi jumped over 8 percent, while Japan’s Nikkei 225 climbed up to 4 percent. Taiwan’s TAIEX increased by about 2.4 percent, and Australia’s ASX 200 went up by 1.8 percent. The Hang Seng Index in Hong Kong also rose more than 1 percent.
Brent crude oil prices dropped by around 1 percent to below $89.50 a barrel. This was linked to hopes for peace in the Strait of Hormuz, a key route for global oil supplies.
Trump stated that a deal to end the conflict could be signed soon, but Iran has not confirmed this yet. Experts believe for the market gains to last, a full agreement and reopening of the Strait of Hormuz are essential.
