Markets Rally as Trump Declares Israel-Iran Ceasefire; Oil Tumbles – Asia Market Wrap

Oil slumped and stocks gained after President Donald Trump said Israel and Iran had agreed to a ceasefire, spurring optimism there will be a lasting pause in the Middle-East conflict.

Global benchmark Brent crude slid almost 5% in early Asian trading, briefly dropping below the level of June 12 when Israel attacked Iran’s nuclear sites. European and US stock-index futures both jumped, while MSCI’s Asia Pacific share gauge headed for its biggest gain in more than two months. The dollar fell against all its major peers and gold, a haven asset, dropped as much as 1%.

Trump’s surprise statement on his Truth Social platform followed Iran’s strikes on a US base in Qatar Monday that were flagged in advance and seen as largely symbolic, helping push the S&P 500 to a gain of 1% on Monday. His announcement follows a volatile period in which financial markets have been whipsawed by concerns the conflict will escalate.

Brent slid toward $68 a barrel at the Asian open before trimming declines to be down about 2.3%, while West Texas Intermediate fell 2.6%. The MSCI Asia Pacific Index of shares climbed almost 2%, with about four stocks gaining for every one that declined. South Korea’s Kospi was the best-performing major index in the region, surging as much as 2.9%.