Oil prices fall, Asian stocks rally on hopes of Iran deal

Oil prices fell and global equities rallied on June 12 as markets reacted to hopes of a possible diplomatic breakthrough aimed at easing the Iran conflict, with investors betting that progress in talks could reduce risks to energy supplies, inflation, and key Asian importers.

Crude oil declined after US President Donald Trump said that the final elements of a potential deal with Tehran had been approved by “all parties,” suggesting that a preliminary agreement could extend a fragile ceasefire and potentially ease tensions around critical energy routes, including the Strait of Hormuz, Caliber.Az reports via Iranian media.

Brent crude and US West Texas Intermediate (WTI) both moved lower, with prices hovering near two-month lows following weeks of volatility driven by conflict-related supply concerns. Brent was trading at around $89 per barrel, while WTI stood near $86.50 per barrel.

The decline in oil prices helped ease concerns for import-dependent economies, particularly in Asia. Regional stock markets responded positively, with South Korea’s Kospi index surging nearly 8% and Japan’s Nikkei rising more than 3%. Gains were led in part by technology and semiconductor stocks, as well as broader relief over potential energy market stabilisation.

Market sentiment was also supported by expectations that lower oil prices could help ease inflationary pressures after earlier spikes linked to the Iran conflict.

However, analysts cautioned that uncertainty remains elevated. Previous signals from Trump included warnings of possible renewed strikes before the latest shift toward a potential agreement, while Iran’s foreign ministry said it had not reached a final conclusion on the deal, underscoring that talks remain unresolved.

By Sabina Mammadli