Asian stock markets reached record highs, and oil prices plummeted to three-month lows after the US and Iran signed an interim peace deal. Japan's Nikkei share average rose to an intraday record high for a fourth consecutive session, surging past 71,000. South Korea's benchmark KOSPI index also hit a record at 9,000.68. Taiwan's stocks touched an intraday high of 46,565.70. These gains were supported by strong performances in semiconductor and AI-related shares. MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.2% higher.
The interim agreement between the US and Iran extends a ceasefire announced in April by another 60 days to allow for truce negotiations. It also includes the full resumption of maritime traffic "with no charge" in the Strait of Hormuz, which is a significant step towards normalizing crude supply and prices.
Following the deal, benchmark U.S. crude futures prices dropped 2.7% to $74.70 a barrel, and Brent fell 2.3% to $77.70 per barrel, marking a three-month low. However, doubts about the deal's durability emerged due to a warning from U.S. Vice President JD Vance against further Israeli attacks on Iran-backed Hezbollah. This led to Brent crude futures gaining 30 cents, or 0.38%, to settle at $79.85 a barrel after sliding as low as $76.54 earlier. U.S. West Texas Intermediate fell 19 cents, or 0.25%, to finish at $76.60 a barrel.
