Asian Stocks Rally Broadly on Middle East Ceasefire Market Optimism

The United States and Iran announced a 2-week ceasefire on the 7th, and with the expected reopening of the Strait of Hormuz—which has been blockaded since the outbreak of war—a mood of optimism permeates the market. Approximately one-fifth of global oil and natural gas transit passes through this vital waterway.

Just as US and Iranian delegations were about to travel to Pakistan for peace talks, Tehran accused Israel of violating the ceasefire terms by continuing to strike the pro-Iranian militant group "Hezbollah" in Lebanon; both the US and Israel denied that the agreement included halting attacks on Lebanon.

US President Trump warned Iran yesterday not to levy tolls on ships passing through the Strait of Hormuz, posting on social media: "They better not do it, and if they are, they better stop right now!"

In another post minutes later, he stated: "Very soon, with or without Iran's help, the oil will start flowing."

According to ship tracking data, since the ceasefire took effect, a total of 10 ships have passed through the waterway, of which only one was a non-Iranian oil tanker.

Asian stocks extended this week's rebound trend today, with markets in Tokyo, Hong Kong, Seoul, Shanghai, Taipei, Singapore, Bangkok, Jakarta, and Manila all closing higher; markets in Sydney and Wellington bucked the trend and closed lower. (Translator: Liu Shu-qin) 1150410