Global Stocks Rise on Peace Deal Optimism

Equities extended their rally and oil prices fell further on Tuesday, fuelled by the US-Iran peace deal and as tech firms tracked another blockbuster performance by SpaceX. The euphoria that swept trading floors at the start of the week continued to propel buying amid relief at the end of a three-month conflict that sent shockwaves through energy markets and global inflation soaring.

US President Donald Trump said ships were again moving through the Strait of Hormuz and it would be “completely open” by Friday, while Iranian media said three oil tankers and two cargo ships had passed through the vital waterway that had been subject to a US naval blockade.

Tehran blockaded the strait after the United States and Israel launched their war against Iran on February 28.

The United States then blocked shipping to and from Iranian ports. However, a senior US administration official said Trump, Vice President JD Vance and Iran’s parliamentary speaker Mohammad Bagher Ghalibaf had already signed the text electronically.

“Investors are increasingly pricing in a lasting improvement in the geopolitical backdrop,” wrote Fiona Cincotta at City Index.

However, with several details yet to be finalised, any setbacks could trigger a sharp market reaction. For now, confidence is growing that the Strait of Hormuz will reopen and energy supplies will normalise.”

She added that “the key question is not whether a deal is reached, but how quickly oil exports and production can recover”. “Investors will also be watching compliance with the agreement and the pace of supply normalisation,” she said.

Oil industry watchers caution that market conditions will likely be tight for a period of weeks or months. Fresh US Department of Energy data showed strategic oil stockpiles sank last week to their lowest level since 1983. Shipping groups warned on Monday that it was too soon to safely resume sailing.

The deal sparked a huge relief rally across global equities, with the Dow on Wall Street hitting a record high, while crude prices plunged almost five percent Monday.

The optimism remained largely intact on Tuesday, with both main crude contracts sliding more than one percent to sit around $80 a barrel—compared with the levels above $110 touched after the war began.

Seoul led gains once more, surging two percent—a day after piling on more than five percent—helped by fresh advances in the tech sector. 

That came on the back of another blockbuster day for Elon Musk’s SpaceX, which jumped almost 20 percent for the second day in a row after listing on Monday.

Tokyo’s Nikkei 225 index also advanced, briefly topping 70,000 points for the first time.