Global Markets See Relief as US and Iran Talk Peace

Global markets have seen a surge in relief after US President Donald Trump announced that Iranian officials are open to a deal, sparking hopes for ceasefire talks between the US and Iran.

The US President stated, "We've been called by the other side, and they would like to make a deal very badly," during remarks at the White House, leading to a rise in Asian stock markets and a decline in oil prices.

Japan's Nikkei 225 saw a significant increase of up to 2.5 percent, while South Korea's KOSPI gained about 3.7 percent. Other markets, such as Singapore's Straits Times Index and Hong Kong's Hang Seng Index, also experienced gains, with increases of 0.6 percent and 0.4 percent respectively.

Impact on Oil Prices

The price of Brent crude, a global oil price benchmark, fell by nearly 1.5 percent to below $98 a barrel. This decline occurred despite the US imposing a naval blockade on Iranian ports, a move that analysts warn could worsen the global energy shortage.

The blockade, which will apply to vessels entering and exiting Iranian ports, was announced after Trump threatened to close the Strait of Hormuz, a key conduit for global oil and natural gas supplies. However, the US military later clarified that the blockade would not fully close the waterway.

Iran has effectively halted shipping through the strait since the start of the war on February 28, resulting in a significant decrease in daily transits. According to maritime intelligence provider Windward, only 21 vessels transited the strait on Sunday, compared to roughly 130 daily transits before the conflict began.