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

By Ronnie Harui

Oil prices slipped while Asian equities rose 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 5.1% to $80.53 per barrel and front-month Brent crude oil futures dropped 4.7% to $83.2 a barrel, according to ICE data.

Equity markets across the Asian region trended higher. Japan's Nikkei Stock Average rose 4.9%, South Korea's Kospi climbed 5.5%, and Taiwan's benchmark Taiex added 2.7%.

"Appetite for risk surged at this week's open after reports emerged that the U.S. and Iran had agreed to a ceasefire framework," said Matt Simpson, senior market analyst at StoneX, in commentary. "While details still need to be finalised and broader negotiations are expected to continue over the coming months, markets have welcomed the development as a significant step towards reducing geopolitical tensions in the Middle East," Simpson added.

U.S. and Asian government bonds rose in price terms as the interim peace-deal agreement damped prospects of monetary tightening by global central banks, including the Federal Reserve.

"The Asian trading session today saw Treasurys rally across the curve, led by the front end, as easing tensions with Iran prompted markets to scale back Fed hike expectations," analysts of CIMB's Treasury and Markets Research, said in a research report.

The yield on 10-year Treasurys fell 5 basis points to 4.4266%. The yield on 10-year Japanese government bonds dropped 5 basis points to 2.585%, 10-year Australian sovereign debt declined 3 basis points to 4.7890%, and 10-year New Zealand government bonds was 7 basis points lower at 3.3410%. Bond yields move inversely to prices.

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

(END) Dow Jones Newswires

June 15, 2026 01:07 ET (05:07 GMT)