KATHMANDU: Global markets have shown signs of relief following the announcement of a ceasefire between the United States and Iran. Notably, crude oil prices have witnessed a significant decline. According to international media reports, U.S. crude oil dropped by approximately 16%, falling to $94.59 per barrel. Similarly, Brent crude oil decreased by nearly 15%, reaching $92.35.
The ceasefire and the subsequent drop in oil prices have had a positive impact on Asian stock markets. Markets saw a sharp rise as soon as trading commenced. Japan’s Nikkei index rose by more than 4%, while South Korea’s Kospi index climbed by over 5%. Analysts suggest that the market has felt a sense of relief as investor confidence returned.
On the other hand, the U.S. dollar has weakened in the currency market. The dollar fell against both the Japanese Yen and the South Korean Won. Experts believe that while the ceasefire and falling oil prices have bolstered the market, the future outlook depends on how long this agreement remains in place.
According to the ceasefire agreement, the Strait of Hormuz will remain open for the next two weeks. During this period, the safe movement of ships will reportedly be ensured with the assistance of the Iranian military. This maritime route had been almost entirely closed during the conflict. With its reopening, the supply chain system is expected to return to normalcy. Under Iran’s proposal, a fee of approximately $2 million will be charged for each ship passing through the strait, with the revenue being shared with Oman.
Previously, U.S. President Donald Trump had set the full reopening of the Strait of Hormuz as a condition, after which this ceasefire became possible. The decision to open Hormuz has had a clear impact on the market, with oil prices dropping between 15% to 16%. However, experts warn that this arrangement is temporary and the situation remains uncertain.
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