Oil Drops and Stocks Increase Following Trump’s Iran War Remarks – Asia Market Wrap

Asian equities rallied and crude oil dipped as Trump hinted that the Iran war could be coming to an end, boosting mood following Monday’s selloff in risk assets.

The MSCI Asia Pacific Index rose 3%, with technology shares leading the way. European equities were also expected to rise, with contracts showing a 1.3% increase. However, equity-index futures for the S&P 500 Index fell 0.2%, signalling that the Wall Street rally that began on Monday may be running out of steam.

Brent crude plummeted 6.1% to $92.90 a barrel, having previously fallen as high as 11%. Even with Tuesday’s dip, the price has increased by more than 50% this year.

The Dollar fell versus the majority of its Group-of-10 rivals, while Treasury 10-year rates rose two basis points to 4.11% after ending a five-day rally on Monday. Gold and silver advanced.

Still, the key Strait of Hormuz remains essentially closed, causing major Persian Gulf producers, including Saudi Arabia, to reduce output. The waterway is critical to the global transit of crude.