A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US on Feb 18, 2025. (File photo: Reuters/Eli Hartman)

Oil plunges, Asia stocks soar after US, Iran ceasefire announcement

The US-Israeli war with Iran saw the steepest monthly oil price rise in history in March of more than 50 per cent.

07 Apr 2026, 23:01 · CNA · Join

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TOKYO: Stocks soared and oil plunged in early trade in Asia on Wednesday (Apr 8) after the United States and Iran agreed to a two-week ceasefire, with Tehran temporarily to reopen the vital Strait of Hormuz.

On oil markets, the US crude benchmark West Texas Intermediate (WTI) tumbled 16.56 per cent to US$96.39 per barrel, while Brent Crude was down 15.89 per cent at US$93.38.

On equities, Japan's Nikkei 225 was up 4.38 per cent at 55,771.56 points while in South Korea, the Kospi rocketed 5.71 per cent to 5,808.65.

"As fears of an escalation in fighting dispelled, buying is likely to take the lead in the Japanese market," Tokai Tokyo Securities said before the opening bell in Tokyo.

After more than a month of attacks by the United States and Israel, Iran said it had agreed to talks with Washington to begin Friday in Pakistan on a path to end the conflict.

"Subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks," US President Donald Trump wrote on his Truth Social platform.

Iranian Foreign Minister Abbas Araghchi confirmed safe passage for two weeks for ships through the Strait of Hormuz, the gateway for one-fifth of the world's oil which Tehran sealed off in retaliation for the war launched on February 28.

The US-Israeli war with Iran saw the steepest monthly oil price rise in history in March of more than 50 per cent.

Trump said the US had received a 10-point proposal from Iran, which he called a workable basis to negotiate, and said the parties were very far along on reaching a definitive agreement for long-term peace.

"It's a good start and could pave the way to a more permanent reopening - but lots of ifs still to work out," IG analyst Tony Sycamore wrote in a note.

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