Oil prices have plummeted, while Asian financial markets have surged on prospects of a compromise that will put an end to the US-Israel confrontation with Iran. On Saturday, US President Donald Trump stated that an agreement with Tehran had been “largely negotiated” and that specifics will be published soon, but the next day he pushed his negotiating team not to rush the agreement.
On Monday morning in Asia, global oil benchmark Brent was down 5.5% at $97.90 (£72.64), while US-traded crude was down 5.8% at $90.99. Trump had earlier stated that the deal would include the reopening of the critical Strait of Hormuz shipping route, but provided no further details.
The small waterway, which normally transports roughly a fifth of the world’s oil and liquefied natural gas (LNG), has been effectively closed since the crisis began on February 28. The Nikkei 225 stock index in Japan surged above 65,000 for the first time, up 2.9% on hopes that the strait would reopen soon. Japan, like neighboring South Korea, has been particularly affected by the conflict because both countries rely substantially on Gulf oil.
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