Asia-Pacific stocks saw notable increases on Tuesday, buoyed by optimistic news from the Middle East. U.S. President Donald Trump announced that Iran and Israel have reached a ceasefire agreement, promising a 12-hour lull in hostilities that could potentially signal the end of the recent 12-day conflict. Trump’s statement, posted on Truth Social, described the ceasefire as ‘fully agreed by and between Israel and Iran’ and declared that ‘the War will be considered, ENDED!’
While the markets responded positively, neither Iran nor Israel has officially confirmed their acceptance of the ceasefire timeline. Japan’s Nikkei 225 climbed 1.59%, and South Korea’s Kospi surged 2.09%. Australia’s S&P/ASX 200 gained 0.69%, and Hong Kong’s Hang Seng index indicated a higher opening.
The geopolitical development also impacted the cryptocurrency market, with Bitcoin rising over 1.65% to $105,538 and Ether jumping over 3% to $2,426.85, reflecting investor optimism amid the potential de-escalation.
In the broader U.S. stock market, major indices closed higher yesterday. The S&P 500 increased 0.96%, closing at 6,025.17, while the Nasdaq Composite gained 0.94%, finishing at 19,630.97. The Dow Jones also saw gains, rising nearly 375 points.
Oil prices, however, experienced a significant drop of more than 7%, settling at $68.51 per barrel, the lowest in over a week. Energy Secretary Chris Wright remarked that traders are optimistic about the de-escalation in the Middle East, which is expected to lead to greater regional stability.
The ceasefire announcement comes after Iran launched missile attacks on a U.S. military base in Qatar, escalating the regional conflict. Despite the optimistic market reactions, tensions remain evident with Israel issuing evacuation warnings in Tehran and the Golan Heights activating alarms due to fears of hostile activity.
The ceasefire, if confirmed and upheld, could mark a turning point in the ongoing conflict that has involved complex military operations from both sides. President Trump expressed confidence that both nations possess the ‘Stamina, Courage, and Intelligence’ to end the war, which he referred to as ‘THE 12 DAY WAR.’’ region’s stability and the global markets’ reaction will be closely watched in the coming days.
