Global financial markets erupted in a massive relief rally on Sunday and Monday following President Trump's announcement that the US-Iran peace deal is complete and the Strait of Hormuz will reopen immediately. Stocks surged across every major exchange while oil prices slumped to three-month lows, reflecting widespread investor optimism that the 107-day war's devastating impact on energy supplies and global trade is finally coming to an end.
Asian markets led the charge with extraordinary gains across the board. Japan's Nikkei 225 index soared 5.5 percent in morning trading, while South Korea's Kospi jumped an even more impressive 5.7 percent. Taiwan's Taiex climbed 2.7 percent and Australia's ASX 200 rose 1.5 percent. The MSCI Asia gauge, which tracks stocks across the region, jumped approximately 3 percent in its strongest single-session performance in months. The breadth and scale of the rally reflected the profound relief felt by investors who had endured months of war-driven uncertainty.
Indian markets joined the global celebration with robust gains. The Nifty 50 index advanced 1.51 percent, adding 357 points to reach 23,980, while the Sensex climbed 1.6 percent, surging 1,208 points to 76,736. Oil marketing company shares jumped approximately 4 percent as declining crude prices promised improved margins for fuel retailers. The rally in Indian equities was broad-based, with gains spanning financial services, consumer goods, and technology sectors as sentiment shifted decisively toward optimism.
US and European equity futures climbed more than 1.2 percent in pre-market trading, signaling that the rally would extend to Western markets when they open. Bond markets also strengthened as risk appetite improved and safe-haven demand receded. The positive sentiment shift was remarkably uniform across all asset classes, with currencies of oil-importing nations strengthening against the dollar while commodity-linked currencies adjusted to the new pricing reality.
Brent crude, the international oil benchmark, fell more than 4 percent and headed toward 83 dollars per barrel, retreating sharply from the elevated levels that had persisted throughout the conflict. The prospect of the Strait of Hormuz reopening to unrestricted traffic means approximately 20 percent of the world's oil and gas supply will once again flow freely through the critical waterway. Energy traders moved quickly to unwind war-premium positions that had kept prices artificially elevated for months.
The market response reflects the enormous economic toll that the conflict extracted from the global economy. During the 107-day war, energy supply disruptions rippled through every sector, raising costs for manufacturers, airlines, shipping companies, and consumers worldwide. Insurance premiums for vessels transiting the Persian Gulf had risen to historic highs, and many shipping lines had abandoned the route entirely. The peace deal removes these barriers and opens the path for a gradual normalization of global trade patterns.
Analysts cautioned that while the initial euphoria is justified, the full recovery of market conditions will take time. Shipping routes need to be reestablished, insurance premiums must be recalculated, and the physical logistics of reopening major port facilities will require weeks of preparation. Nevertheless, the overwhelming consensus across financial institutions is that the deal marks a decisive turning point for global markets, with most forecasters revising growth projections upward and energy price forecasts downward in response to the historic agreement.
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