Asian Markets Rise as US-Iran Tensions Ease
Asian markets rose on Monday as US-Iran tensions eased after both sides paused attacks. The pause in hostilities reduced concerns that oil supplies would be disrupted, leading to a decline in Brent crude prices.
Brent crude fell by up to 7.4% to around $92 per barrel after the US halted its strikes on Iran. The conflict had driven oil prices higher throughout July, with Brent crude reaching above $100 per barrel at one point.
Stocks across Asia rose, with Japan's Topix increasing by 0.8%, South Korea's Kospi rising 0.8%, and the Nikkei adding 0.07%. The MSCI Asia Pacific index climbed 0.5% as investors awaited the Federal Reserve's interest rate decision on Wednesday.
The US has remained silent since Friday, July 24, giving no explanation for stopping its campaign against Iran after 13 days of attacks. Iran's military also stopped its own attacks, citing a pause in hostilities that came as Omani and Iranian officials discussed keeping the Strait of Hormuz open to shipping.