📈 Global Peace Deal Triggers Asian Market Surge & Oil Price Tumble

A tentative peace deal between the United States and Iran has sparked a massive wave of risk appetite across Asian markets and a sharp drop in energy prices, significantly easing global inflationary pressures. • Overall Impact: Global share markets rallied as the dollar slipped and oil prices plunged following the agreement, which includes reopening the critical Strait of Hormuz. • Energy & Commodity Markets: • Brent crude tumbled 4% to US$ 83.80 a barrel (down from its May peak of US$ 126.41). • U.S. crude slid 4.7% to US$ 80.89 a barrel. • Safe-haven gold climbed 1.9% to US$ 4,300 an ounce, supported by a drop in bond yields. • Regional Market Breakdowns: • Japan: The Nikkei climbed 3.0%, heavily boosted by the prospect of cheaper oil for the net energy-importing nation. • South Korea: The market surged by 4.3%. • Asia-Pacific: MSCI’s broadest index outside Japan rose 1.5%. • US Futures: Nasdaq futures jumped 1.5% and S&P 500 futures climbed 0.9%. • Central Bank Implications: The sustained fall in energy prices provides immense relief for global central banks meeting this week (including the US, UK, and Japan), easing immediate pressure to tighten monetary policy. The US Federal Reserve is widely expected to hold interest rates at 3.50%–3.75% this Wednesday. _Note: Market analysts note that while the deal boosts current risk appetite, uncertainty remains regarding shipping regulations and potential tolls managed by Iran and Oman through the strait._