Most stocks rise, oil flat following peace deal-fuelled rally
TLE DESK: Equities mostly rose on Tuesday while oil prices held steady following the previous day’s strong rally triggered by the US-Iran peace deal that will reopen the Strait of Hormuz. Attention now turns to developments ahead of Friday’s signing ceremony in Switzerland, marking the end of more than three months of conflict that disrupted energy markets and drove global inflation higher.
US President Donald Trump stated that ships were again moving through the strait and it would be “completely open” by Friday. Iranian media reported that three oil tankers and two cargo ships had already passed through the area previously under US naval blockade. A senior US official confirmed that Trump, Vice President JD Vance, and Iran’s parliamentary speaker Mohammad Bagher Ghalibaf had signed the deal text electronically.
“Investors are increasingly pricing in a lasting improvement in the geopolitical backdrop,” noted Fiona Cincotta at City Index. However, she cautioned that with details still to be finalized, any setbacks could trigger sharp market reactions. The key question remains how quickly oil exports and production can recover, along with compliance and the pace of supply normalization.
Oil industry observers warn that market conditions will likely stay tight for weeks or months. US strategic oil stockpiles fell last week to their lowest level since 1983, while shipping groups said it was still too early to fully resume operations safely.
The deal fueled a major relief rally on Monday, pushing the Dow to a record high and sending crude prices down nearly five percent. Optimism largely carried into Tuesday with both main crude benchmarks barely changed and stocks mostly higher. Seoul led gains, rising more than one percent after a strong session the previous day, boosted by tech advances including another near 20 percent jump in SpaceX shares.
Shanghai, Singapore, Taipei, Wellington and Manila also advanced, while Tokyo, Hong Kong and Sydney declined. Chinese retail sales data showing a contraction last month drew little reaction. Investors remain focused on the Bank of Japan’s policy meeting later Tuesday, where a rate hike to a 31-year high is widely expected.
Key market figures around 0230 GMT:
Tokyo – Nikkei 225: DOWN 0.1 percent at 69,234.42
Hong Kong – Hang Seng Index: DOWN 1.4 percent at 24,507.31
Shanghai – Composite: UP 0.1 percent at 4,099.70
West Texas Intermediate: FLAT at $80.77 a barrel
Brent North Sea Crude: FLAT at $83.19 a barrel
