Strait of Hormuz reopening sparks gains across Asian markets, “thanks to Iran”

Asian stocks rallied sharply on April 8 following a decline in oil prices after the announcement of a two-week ceasefire between the United States and Iran and the reopening of the Strait of Hormuz.

Japan’s Nikkei 225 jumped 5.39% to close at 56,308.42, Australia’s S&P/ASX 200 rose 2.6% to 8,951.80, and South Korea’s Kospi surged 7.1% to 5,884.55, Caliber.Az reports, citing Japanese media.

In Hong Kong, the Hang Seng gained 3.1% to 25,901.61, while China’s Shanghai Composite added 2.5% to 3,988.38.

WTI crude futures fell $18.23 to $94.72 per barrel, Brent dropped $16.43 to $92.84, and natural gas futures declined 20%.

The previous spike in prices had been caused by the closure of the Strait of Hormuz, a critical route for global energy supplies.

“Yet the mood remains one of cautious optimism rather than outright celebration. The ceasefire is only two weeks long, and markets will be watching closely to see whether shipping through the Strait of Hormuz normalises as promised and whether the fragile truce can pave the way for a more durable peace agreement,” said Tim Waterer, analyst at KCM Trade.

On Wall Street, stocks also rose: the S&P 500 added 0.1%, the Dow Jones fell 0.2%, and the Nasdaq gained 0.1%.

The yield on 10-year US Treasury bonds dropped to 4.24%, the dollar weakened to 158.10 yen, and the euro strengthened to $1.1700.

Analysts cautioned against premature optimism.

“There is a reason to be optimistic, but it is still too early to tell, because, as you know, after all, it is Trump,” said Takashi Hiroki, strategist at MONEX.

By Bakhtiyar Abbasov