(CNA, Hong Kong, 17th - International Wire Services) Oil prices continued to fall amid a U.S.-Iran peace agreement, and with markets watching future negotiations and the reopening of the Strait of Hormuz—a critical energy shipping route—most major Asian stock indices closed higher today.

According to AFP, optimism that the U.S. and Iran could reach a lasting agreement after more than three months of conflict has eased concerns over energy market volatility and inflationary pressures. Crude oil prices have dropped over 10% this week.

The Wall Street Journal reported that, as part of the war-ending agreement, Washington may ease sanctions on Iranian crude oil, allowing Tehran to immediately resume exports of crude and refined petroleum products—accelerating the downward trend in oil prices.

Market attention now turns to the formal signing ceremony scheduled for June 19 in Switzerland, followed by negotiations focusing on Iran’s nuclear program and the lifting of international economic sanctions.

U.S. President Trump stated that once the peace agreement is signed, the Strait of Hormuz—through which about one-fifth of the world’s oil passes—will be “fully reopened.”

Fabien Yip, market analyst at IG, noted: “Currently, risks are skewed to the upside… If the June 19 signing fails to deliver a durable and transparent agreement, especially on nuclear clauses, the recent oil price decline could quickly reverse—past failed attempts serve as proof. Meanwhile, the sustained resumption of shipping through the Strait of Hormuz will be the strongest evidence of the agreement’s implementation.”

Japan’s benchmark Nikkei index rose 0.7% to close at 69,902.25. Hong Kong’s Hang Seng Index fell 0.7% to 24,312.16. The Shanghai Composite Index gained 0.4%, closing at 4,108.08.

Among other Asian markets, Taipei, Seoul, Sydney, Singapore, and Kuala Lumpur posted gains. Jakarta, Wellington, and Manila markets ended lower. (Compiled by: Ho Hung-Ju) 1150617

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  • Source: CNA (Central News Agency)
  • Category: Taiwan