Global oil prices fell on Thursday after reports that the United States and Iran had signed an interim peace agreement aimed at ending months of conflict and stabilizing energy flows.
The benchmark Brent crude declined as much as 1.9 percent in early Asian trading, reversing earlier volatility caused by geopolitical tensions and renewed supply concerns.
Brent crude slides after volatile week
Brent crude futures for August delivery stood at $78.07 as of 04:30 GMT, only around 7 percent higher than levels seen before the US–Israel conflict with Iran began on February 28.
Earlier in the week, prices briefly surged above $81 per barrel after warnings from US President Donald Trump that military action could resume if Iran failed to comply with conditions.
However, the latest peace framework announcement quickly reversed gains, bringing prices back down toward previous levels.
Asian stock markets rally on peace optimism
Equity markets across Asia responded positively to the easing geopolitical outlook, with investors regaining confidence in global energy stability.
Japan’s Nikkei 225 and South Korea’s Kospi both reached record highs, rising more than 2 percent and 1.7 percent respectively.
Taiwan’s Taiex index also gained up to 1.3 percent during trading.
While most Asian markets advanced, Hong Kong’s Hang Seng Index declined by 1.7 percent, bucking the regional upward trend.
US stock futures also moved higher in pre-market trading, with contracts linked to the S&P 500 rising about 0.8 percent and the Nasdaq Composite climbing approximately 1.3 percent.
Maritime security and Strait of Hormuz developments
Pakistani Prime Minister Shehbaz Sharif said the US–Iran memorandum of understanding had come into effect “with immediate effect,” following his role in mediating the negotiations.
According to Sharif, Iran would reopen the Strait of Hormuz while the US would lift its naval blockade of Iranian ports. However, these claims have not been independently verified.
Despite the diplomatic breakthrough, uncertainty remains in global shipping routes.
The Baltic and International Maritime Council (BIMCO) warned that critical details such as safe transit routes and operational timelines are still unclear.
Industry officials said the security situation remains volatile, advising shipowners to continue risk assessments before resuming normal transit through the Strait of Hormuz.
Energy markets watch for stability
Although the agreement has eased immediate fears of supply disruption, analysts say global energy markets remain sensitive to any breakdown in negotiations.
With hundreds of vessels still waiting in the Gulf region, shipping companies are closely monitoring developments before restoring full operations.
