Global markets rally as US-Iran peace deal signals reopening of Strait of Hormuz

Global financial markets experienced a significant rally on Monday following the announcement of a preliminary peace agreement between the United States and Iran. Announced by President Trump late Sunday, the deal aims to end a three-month conflict and restore navigation in the Strait of Hormuz. Asian indices recorded sharp gains, with Japan's Nikkei 225 rising between 4.7% and 5.5% and the South Korean Kospi jumping between 4.87% and 6%. European markets followed suit, with the STOXX 600 reaching a new record high of 639.20 points. Energy prices dropped sharply, with Brent crude falling over 4% to approximately 83 dollars per barrel, as the agreement is expected to ease supply chain disruptions and lower geopolitical risk. While the broader market reacted positively, some energy sector stocks such as BP declined, whereas airline shares like Lufthansa and Air France saw gains. Political uncertainty persists as some officials, including Itamar Ben-Gvir, have publicly questioned the validity of the agreement.