WireApril 8, 2026 at 7:30 AM
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Asian markets experienced significant gains Wednesday morning as investors reacted positively to a two-week ceasefire between the United States and Iran. However, the details of the ceasefire, particularly regarding the reopening of the strategically vital Strait of Hormuz, remain uncertain.
South Korea’s KOSPI index led the surge, climbing 7.1%, followed by Japan’s Nikkei 225 with a 5.5% increase. Taiwan’s TAIEX rose 4.6%, while Hong Kong’s Hang Seng Index gained 3.1% after a long holiday weekend.
Both West Texas Intermediate and Brent crude oil prices fell by over 13%, providing relief to Asia’s oil-importing nations such as China, South Korea, Singapore, and the Philippines.
Late Tuesday, U.S. President Donald Trump announced the Pakistan-brokered ceasefire, just 90 minutes before his self-imposed deadline. The ceasefire is reportedly conditional on the "complete, immediate, and safe opening of the Strait of Hormuz." However, Iran’s Foreign Minister Abbas Aragachi stated that passage would be "possible via coordination with Iran’s armed forces."
An unnamed official told the Associated Press that the ceasefire deal allows both Iran and Oman to charge transit fees, with Iranian officials previously suggesting a $2 million fee per ship.
Asian governments have maintained a cautious stance amid the mixed messages from Washington. Singapore announced nearly 1 billion Singapore dollars in relief measures for households and businesses, while Malaysia warned citizens to prepare for rising fuel and transport costs.
The Strait of Hormuz, closed since the start of the Iran conflict, is a key shipping route for oil, gas, and other commodities, with at least 800 ships trapped in the Gulf due to the closure.