Global markets strengthen as US–Iran peace initiative boosts sentiment; oil prices fall

Staff Report: PNN

Signs of easing tensions between the United States and Iran and the announcement of a possible peace agreement have created a positive response in the global economy. Expectation of reduced conflict has led to gains in global stock markets and a notable decline in international oil prices.

On Monday, major Asian stock markets showed optimistic investor sentiment. Stock indices in Japan, South Korea, Taiwan, Australia, and Hong Kong opened strongly. Analysts say expectations of reduced tension in the Middle East are one of the main reasons behind this positive trend.

The impact was also seen in the US market. Futures of major indices were already trending upward before regular trading began on Wall Street. Investors showed increased interest in technology and energy sector stocks.

Economic analysts say that a potential peace agreement is restoring investor confidence. In particular, expectations of reduced uncertainty in global trade and energy supply are positively influencing the market.

Meanwhile, crude oil prices in the international market also declined. Expectations of normal shipping traffic in the strategic Strait of Hormuz have eased concerns over supply disruptions, leading to lower prices.

Experts believe that falling oil prices could reduce global inflationary pressure, which may also reduce the need for central banks to raise interest rates.

However, shipping industry stakeholders have warned that even if conflict tensions ease, full normalization will take time. Many vessels were previously disrupted, and supply chains were affected.

Maritime experts estimate that restoring safe sea routes, resuming stranded shipping operations, and rebuilding insurance confidence could take several months to over a year.

Diplomatic sources suggest that preparations are underway for a formal peace agreement between the US and Iran. The agreement may include reducing regional tensions, facilitating energy trade, and easing certain economic sanctions.

Global economic observers believe that if the peace process succeeds, it could bring positive changes not only in the Middle East but also in global trade, energy markets, and investment conditions.