Asian Markets Surge as U.S.-Iran Peace Rumors Defy Skepticism

South Korea's Kospi index led the regional climb, surging 8.5%, while Japan's Nikkei Stock Average gained 4.1% and Australia's S&P/ASX 200 rose 1.7%. The appetite for risk assets intensified after Trump claimed Supreme Leader Mojtaba Khamenei had endorsed a plan to end hostilities, effectively pausing rhetoric about military strikes and the seizure of Iranian oil infrastructure.

Despite the immediate market enthusiasm, analysts remain wary of the volatility triggered by these headlines. Matt Simpson of StoneX noted that the rally rests on fragile ground, as both Iran and Israel have already pushed back against the existence of such an agreement. Should the deal fail to materialize, the current risk-on sentiment could evaporate as quickly as it appeared.

The cooling rhetoric also shifted the energy sector, with West Texas Intermediate crude sliding 1.4% to $86.52 per barrel and Brent crude dropping 1.3% to $89.22. ANZ Research pointed to reports of increased tanker traffic through the Strait of Hormuz—the critical chokepoint for one-fifth of global oil supplies—as further evidence that investors are betting on a stabilization of regional energy flows.