Global financial markets surged on Saturday while oil prices tumbled sharply, as investor sentiment improved following a ceasefire between the United States and Iran, easing immediate concerns over energy supply disruptions.
Brent Crude fell 7.57 per cent to settle at USD 91.87 per barrel, down from USD 99.39 in the previous session. It also touched an intraday low of USD 86.08, moving further away from its 52-week high of USD 114.81.
Similarly, West Texas Intermediate (WTI) dropped 9.63 per cent, declining by USD 9.12 to USD 85.57 per barrel. In contrast, gold prices edged higher by 0.94 per cent to USD 4,833.56, reflecting some continued demand for safe-haven assets.
US equity markets reacted positively to the easing geopolitical tensions. The Dow Jones Industrial Average jumped 868.71 points, or 1.79 per cent, to close at 49,447.43. The S&P 500 rose 1.20 per cent to 7,126.06, while the Nasdaq Composite gained 1.52 per cent to settle at 24,468.48.
In Asia, markets showed a more cautious trend. Japan’s Nikkei 225 fell 1.78 per cent, while Hong Kong’s Hang Seng Index and Taiwan’s Taiwan Weighted Index declined by 0.89 per cent each. South Korea’s KOSPI also slipped 0.55 per cent.
Other regional markets posted mixed results. Indonesia’s Jakarta Composite Index rose marginally by 0.17 per cent, while China’s Shanghai Composite edged down 0.10 per cent. Singapore’s Straits Times Index and Thailand’s SET Index also recorded slight declines.
The market movement followed Iran’s acceptance of US President Donald Trump’s peace proposal, which includes a two-week ceasefire, safe passage through the Strait of Hormuz, and a pause in military operations. The development has raised hopes for broader negotiations and a possible diplomatic resolution.
Trump expressed optimism about the talks, stating that discussions with Iran are progressing and will continue over the weekend. He also indicated that positive developments are emerging on other regional fronts, including Lebanon.
