Oil rises while Asian stocks fall amid fragile US-Iran truce

Global markets remained on edge on Thursday as oil prices surged while Asian stocks retreated, reflecting investor concerns over the fragile ceasefire between the United States and Iran and continuing uncertainty around the Strait of Hormuz .

Brent crude , the international oil benchmark, climbed above $97 per barrel , reversing an earlier drop that had briefly pushed prices below $92 following the announcement of a temporary ceasefire. US benchmark crude also jumped to around $97.50 per barrel , highlighting renewed fears of global energy supply disruptions .

Much of the uncertainty centres on the Strait of Hormuz , one of the world’s most critical oil transit routes through which nearly one-fifth of global oil shipments typically pass. Although the ceasefire raised hopes that shipping through the narrow waterway would resume normally, tanker movement has remained limited and traders are closely watching developments.

Asian equity markets reacted cautiously. Japan’s Nikkei 225 fell 0.9 per cent , while South Korea’s Kospi dropped 1.6 per cent . Hong Kong’s Hang Seng declined 0.4 per cent , and China’s Shanghai Composite slipped 0.7 per cent . Markets in Australia and Taiwan also edged lower.

Despite the nervous mood in Asia, Wall Street closed higher on Wednesday following the ceasefire announcement. The S&P 500 rose 2.5 per cent , while the Dow Jones Industrial Average gained 2.9 per cent and the Nasdaq Composite advanced 2.8 per cent .

Diplomatic efforts are now focused on converting the two-week ceasefire into a lasting agreement , with discussions expected soon between US and Iranian officials.

For investors, the outlook remains uncertain. With geopolitical tensions still simmering and shipping through the Strait of Hormuz yet to fully normalise, global markets are likely to remain sensitive to every development in the region.