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Asian markets rose and oil prices fell on Monday after the US and Iran paused attacks, easing fears that the conflict would disrupt West Asian oil supplies further.
Brent crude dropped as much as 7.4%, falling briefly below $90 a barrel, it is now trading around $92 after the US halted its strikes on Iran, which had lasted nearly two weeks.
Also Read: Crude oil prices fall over 5% as regional tensions cool on pause in US, Iran strikes
Stocks rose across the region. Japan's Topix gained 0.8%, South Korea's Kospi rose 0.8%, the Nikkei added 0.07%, and Hang Seng futures were up 0.2%.
The wider MSCI Asia Pacific index climbed 0.5%, led by gains in South Korea and Japan. The yen strengthened 0.2% to 163.58 per dollar, the offshore yuan stayed steady near 6.7667 per dollar, and Nasdaq 100 futures jumped 1.3%.
The dollar, which had gained as a safe haven during the conflict, weakened against nearly all other Group of 10 currencies as tensions eased, meanwhile Treasury prices rose as inflation fears faded.
Also Read: The Hormuz blockade has shown the world that money can't buy everything
The US has remained silent since late Friday July 24, giving no explanation for stopping the campaign against hit Iran after 13 days of attacks. This left markets unsure about what US President Donald Trump would do next.
Iran's military said on Sunday July 26 that it had also stopped its own attacks. The pause came as Omani and Iranian officials discussed keeping the Strait of Hormuz open to shipping, raising hopes that the key oil route would avoid further disruption.
The truce comes at a critical time for markets. Investors are now watching whether the Federal Reserve would raise interest rates on Wednesday July 29, given the inflation pressure from July's oil price spike. They are further waiting for earnings from major tech companies, after a recent sell off driven by doubts over heavy AI spending.
Oil prices had surged through July because of the conflict, overshadowing a weaker than expected June inflation report that had initially given the Fed room to hold rates steady. Combined with new tariffs from the Trump administration and strong AI driven demand, some analysts now think Fed officials could disagree among themselves at their July 28-29 meeting if they choose to hold rates again.
Also Read: July Fed rate hike off the table after softer June CPI: Ed Yardeni
The Fed's decision on Wednesday starts three days of central bank meetings among Group of Seven nations, followed by the Bank of England and the Bank of Japan.
None of these are expected to change rates, but all three will likely stress they are watching inflation from higher energy costs closely.
Investors will also watch earnings from the biggest tech firms, after a recent AI stock sell off revived doubts about whether the huge sums spent on infrastructure will pay off.
Brent crude dropped as much as 7.4%, falling briefly below $90 a barrel, it is now trading around $92 after the US halted its strikes on Iran, which had lasted nearly two weeks.
Also Read: Crude oil prices fall over 5% as regional tensions cool on pause in US, Iran strikes
Stocks rose across the region. Japan's Topix gained 0.8%, South Korea's Kospi rose 0.8%, the Nikkei added 0.07%, and Hang Seng futures were up 0.2%.
The wider MSCI Asia Pacific index climbed 0.5%, led by gains in South Korea and Japan. The yen strengthened 0.2% to 163.58 per dollar, the offshore yuan stayed steady near 6.7667 per dollar, and Nasdaq 100 futures jumped 1.3%.
The dollar, which had gained as a safe haven during the conflict, weakened against nearly all other Group of 10 currencies as tensions eased, meanwhile Treasury prices rose as inflation fears faded.
Also Read: The Hormuz blockade has shown the world that money can't buy everything
The US has remained silent since late Friday July 24, giving no explanation for stopping the campaign against hit Iran after 13 days of attacks. This left markets unsure about what US President Donald Trump would do next.
Iran's military said on Sunday July 26 that it had also stopped its own attacks. The pause came as Omani and Iranian officials discussed keeping the Strait of Hormuz open to shipping, raising hopes that the key oil route would avoid further disruption.
The truce comes at a critical time for markets. Investors are now watching whether the Federal Reserve would raise interest rates on Wednesday July 29, given the inflation pressure from July's oil price spike. They are further waiting for earnings from major tech companies, after a recent sell off driven by doubts over heavy AI spending.
Oil prices had surged through July because of the conflict, overshadowing a weaker than expected June inflation report that had initially given the Fed room to hold rates steady. Combined with new tariffs from the Trump administration and strong AI driven demand, some analysts now think Fed officials could disagree among themselves at their July 28-29 meeting if they choose to hold rates again.
Also Read: July Fed rate hike off the table after softer June CPI: Ed Yardeni
The Fed's decision on Wednesday starts three days of central bank meetings among Group of Seven nations, followed by the Bank of England and the Bank of Japan.
None of these are expected to change rates, but all three will likely stress they are watching inflation from higher energy costs closely.
Investors will also watch earnings from the biggest tech firms, after a recent AI stock sell off revived doubts about whether the huge sums spent on infrastructure will pay off.
