SINGAPORE, May 6 (Reuters): Following U.S. President Donald Trump’s announcement of “great progress” toward a “final agreement” with Tehran, stocks surged, oil prices plummeted, and the dollar fell in the Asian morning on Wednesday. Meanwhile, momentum in AI-driven trades intensified.
A worldwide energy crisis was sparked by Trump’s announcement that he will temporarily halt an operation escorting ships through the Strait of Hormuz, which carries roughly a fifth of the world’s oil and has been blockaded by Iran since late February.
The news caused S&P 500 e-mini futures to rise 0.3%, while Brent crude fell 1.2% to $108.51 a barrel. Leading the way was a 5.1% increase in South Korea’s Kospi (.KS11), which cleared the 7,000 mark for the first time. MSCI’s broadest index of Asia-Pacific shares outside of Japan (.MIAPJ0000PUS) surged 2.3% to a new high. Despite the U.S. and Iran trading blows yesterday, U.S. Defense Secretary Pete Hegseth ensured that the ceasefire remained in place, which helped markets embrace a sense of calm and stability overnight, according to a research note written by Westpac analysts.
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