Asian stock markets rallied and oil prices fell sharply on Monday following reports that the United States and Iran have reached a peace agreement aimed at ending nearly four months of conflict.
The development triggered a broad unwinding of the geopolitical risk premium that had weighed on energy and shipping markets throughout the escalation.
The reported agreement marks a significant diplomatic shift between the two nations, which have been locked in a tense standoff.
Equities across the region posted solid gains as traders reassessed the outlook for global trade routes and energy supply chains.
Oil prices tumbled in the session, reflecting the market's initial reaction to the prospect of de-escalation in the Middle East.
The repricing underscores how quickly sentiment can shift when geopolitical tensions ease, with investors moving rapidly to close out positions that had been hedged against further conflict.
The reported agreement marks a significant diplomatic shift between the two nations, which have been locked in a tense standoff.