Stocks surge as Iran deal reopens Hormuz in 2026

Deal announcement lifts risk appetite

Asian share markets rallied after news of a deal to end the Iran conflict and reopen the Strait of Hormuz, a key chokepoint for global oil flows. The move came after U.S. President Donald Trump confirmed a preliminary or framework agreement on social media. Markets treated the announcement as a de-escalation signal after months of hostilities that had shut the strait and contributed to an oil shock. Early trading in Asia saw strong buying across major indices. At the same time, oil prices fell sharply as traders repriced near-term supply risk.

Trump says agreement is complete, blockade removed

Trump said in a late Sunday post that the agreement with the Islamic Republic of Iran was “now complete.” In the same message, he said he authorized the “toll free opening” of the Strait of Hormuz. He also said he authorized the “immediate removal” of the U.S. naval blockade on Iranian ports. The combination of reopening shipping lanes and removing the blockade was read as a direct catalyst for the overnight move in oil and equity futures. The announcement arrived shortly before U.S. futures trading began, amplifying the initial market reaction.

Asia opens higher: Japan and South Korea lead

In early Monday trading, benchmark indices in Tokyo and Seoul rose by more than 5% according to the report. More detailed market pricing also showed South Korea’s KOSPI up 5.51% to 8,571.51. Japan’s Nikkei 225 jumped 4.87% to 69,233.28. The rally reflected relief that a major shipping route could resume operations, reducing uncertainty around energy costs and supply chains. The gains also followed broader global equity strength seen late last week as peace-talk headlines accumulated.

U.S. futures point to a stronger Wall Street open

U.S. stock-index futures climbed sharply on the peace-deal headlines. At one point, Dow Jones Industrial Average futures were reported up by 267 points, or 0.52%. S&P 500 futures rose 0.79% and Nasdaq futures jumped 1.26%. Separate updates also cited Dow futures up 342 points, or 0.7%, with S&P 500 futures up 0.9% and Nasdaq 100 futures up 1.4%. Another snapshot put Dow futures up 380 points, or 0.74%, to 51,607.00, while S&P 500 futures gained 72.25 points, or 0.97%, to 7,507.25 and Nasdaq 100 futures advanced 480.25 points, or 1.62%, to 30,142.25.

Oil drops as Hormuz reopening eases supply fears

Oil prices fell by more than $1 per barrel in the initial reaction. U.S. crude was cited down 3.8% at $11.65 per barrel, while Brent declined 3.4% to $14.35. A later update put WTI down 4.61% at $10.97 per barrel and Brent down 3.92% at $13.91 per barrel. Other references in the report said U.S. crude fell nearly 5% and traded near $10 a barrel. Natural gas futures also slipped 1.92% to $1.06 per MMBtu in one snapshot. The pricing reflected a fast reversal of the geopolitical risk premium that had built up while the strait was shut.

How markets had been reacting in the days before

The report also described sharp moves in the prior sessions as headlines shifted between escalation and negotiation. On Thursday, the three major U.S. indices finished significantly higher, with the S&P 500 up 1.75% to 7,394.30, the Nasdaq Composite up 2.54% to 25,809.66, and the Dow up 929 points to 50,848.75. That rally followed Trump’s announcement that planned strikes on Iran were canceled, although the U.S. naval blockade would remain until a final agreement. Separately, MSCI’s global equities index rose 10.26 points, or 0.94%, to 1,097.24 on renewed hopes for peace. Oil also moved sharply on those headlines, including a reading where Brent fell $1.37, or 3.6%, to $19.73 and WTI fell $1.20, or 3.6%, to $16.83.

Spillover into broader markets, including India

The relief trade was not limited to the U.S., Japan, and South Korea. A separate market update in the report said Taiwan’s Taiex gained 2.4% in Friday trading. India’s Sensex advanced 1.4% in the same session. Those moves were tied to broader Wall Street gains and falling oil prices after Trump said there was a breakthrough in talks to end the Iran war. The report also noted that Brent’s level, even after a sharp drop, was still well above the roughly $10 a barrel level cited as prevailing before the war began in late February.

Key numbers to watch

Why Hormuz matters for investors

The Strait of Hormuz is repeatedly described in the report as “critical,” and the shutdown was linked to an oil shock that rippled into the global economy. With the reopening now tied to a U.S.-Iran deal, markets immediately repriced the probability of disrupted shipments. Lower oil prices can ease inflation pressure for oil-importing economies, while also changing near-term expectations for energy-sector earnings. At the same time, the report showed that oil and gas stocks had risen nearly 2% in a previous session when energy prices climbed on heightened tensions, highlighting how quickly sector leadership can rotate with headline risk.

Market impact and what comes next

The immediate market impact was clear in the combination of stronger equity futures and weaker oil. Asian benchmarks gained sharply, and U.S. futures suggested a risk-on start for Wall Street. The policy signal was also direct: Trump said the U.S. naval blockade would be removed alongside the opening of the strait. Investors will now watch for confirmation steps around the reopening of shipping routes and any further official communication on implementation. Trading in the days ahead is likely to remain sensitive to updates on the agreement’s finalization and operational follow-through in the Strait of Hormuz.