Oil Prices Fall, Asian Equities Rise Amid U.S.-Iran Agreement on Interim Peace Deal

Dow Jones06-15 08:42

By Ronnie Harui

Oil prices slipped while Asian equities rose early Monday as a U.S.-Iran agreement on an interim peace deal reduced concerns of supply disruption in the Middle East and spurred investor appetite for risk assets.

Iran and the U.S. have agreed on an interim peace deal, the two countries announced Sunday. A deal is set to be signed Friday, President Trump and Pakistani negotiators said.

Trump said the Strait of Hormuz would be reopened on Friday, indicating in a social-media post that the time was needed "for purposes of mine removal." In an earlier post, Trump said that Iran's restrictions on shipping in the Strait and the U.S. naval blockade on Iran would be simultaneously and immediately lifted.

"One of the most significant aspects of the potential agreement is the reopening of the Strait of Hormuz, a strategic maritime route through which approximately one-fifth of the world's oil consumption passes," Antonio Di Giacomo at XS.com said in an email. "The prospect of fully restoring crude flows through this corridor significantly reduces fears of supply shortages and improves the outlook for stability in global energy markets," the senior market analyst added.

Front-month West Texas Intermediate crude oil futures slipped 4.8% to $80.81 per barrel and front-month Brent crude oil futures dropped 4.1% to $83.75 a barrel, according to ICE data.

Equity markets across the Asia-Pacific region were higher. Japan's Nikkei Stock Average rose 4.7%, South Korea's Kospi climbed 5.8%, and Australia's S&P/ASX 200 benchmark index added 1.5%.

"Hopes for a diplomatic breakthrough to de-escalate the [U.S.-Iran] conflict pushed oil prices lower and lifted equities," said Sally Auld, group chief economist at National Australia Bank, in commentary. "Lower oil prices have eased inflation concerns and the market pushed expectations for the next [Federal Reserve] rate hike into next year," Auld added.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

June 14, 2026 20:42 ET (00:42 GMT)

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