The United States and Iran have agreed to stop attacking each other, marking a significant de-escalation following a weekend of military strikes that had heightened tensions in the region.
The announcement, made late Sunday, signals a potential end to nearly four months of conflict between the two governments.
Financial markets reacted swiftly to the news.
Asian equities mostly rose on Monday as investors absorbed the prospect of a formal peace agreement.
The development injected a wave of relief into risk assets, reversing the uncertainty that had weighed on global sentiment.
In energy markets, oil prices edged higher as traders began to reprice supply risks.