Asian markets surge, oil slumps as US and Iran agree to two-week ceasefire

New Delhi: Asian stock markets spiked on Wednesday morning after the news of a two-week ceasefire between the United States and Iran. Oil prices fell sharply following the de-escalation of military tensions in the Middle East and the promised reopening of the Strait of Hormuz.

Japan's Nikkei 225 led the rally with a 5.28 per cent surge, up by 2,822.44 points, while South Korea's KOSPI rose 5.61 per cent or by 308.11 points. India's GIFT NIFTY also climbed over 3 per cent to reach the 23,841.00 level.

Other regional indices, including the Hang Seng and Taiwan Weighted, saw gains of 3.04 per cent or 763.47 points and 3.72 per cent or 1234.69 points, respectively.

The ceasefire triggered a massive sell-off in the energy sector. Brent Crude plummeted 13.04 per cent to trade at USD 95.02 per barrel at 7:24 am IST, while US Crude Oil dropped 13.76 per cent to USD 97.41 at the same time.

On the other hand, Gold surged by 100.45 points or 2.13 per cent.

In what will bring relief to the world, the Iranian side has accepted US President Donald Trump's peace overture and agreed to safe passage via the Strait of Hormuz for two weeks, as well as a pause in military operations.

Iranian Foreign Minister Seyed Abbas Araghchi posted the Islamic Republic's response on X and said Iran would cease its military operations if it was not attacked.

The two-week pause is likely to lead to further comprehensive negotiations between the US and Iran and a possible peace summit in Islamabad.