Asian markets rally after Trump halts Iran strike plan

April 08, 2026 (MLN): Asian markets surged on Wednesday, leading a broad risk-on rally after U.S. President Donald Trump declared a temporary suspension of planned military strikes on Iranian infrastructure, easing geopolitical tensions across the region.

The two-week pause, declared via Truth Social, is conditional on Iran ensuring the “complete, immediate, and safe opening” of the strategically vital Strait of Hormuz, as reported by CNBC.

The development significantly reduced fears of supply disruptions in global energy markets, triggering a sharp drop in crude oil prices.

Responding to the declaration, Iran’s Foreign Minister Abbas Araghchi stated on X, citing the country’s Supreme National Security Council, that Tehran’s armed forces would halt their defensive operations.

He added that safe maritime passage through the Strait of Hormuz would be facilitated through coordination with Iranian military forces during the two-week period.

The easing of tensions sent oil markets sharply lower, with U.S. benchmark West Texas Intermediate (WTI) crude plunging nearly 15% to $96.18 per barrel.

Meanwhile, global benchmark Brent crude futures dropped over 13% to $94.81 per barrel, showing reduced concerns over supply disruptions in one of the world’s most critical oil transit chokepoints.

Asian markets reacted strongly to the geopolitical relief. South Korea’s Kospi index soared more than 6%, while the Kosdaq gained 3.95%, driven by robust advances in major technology stocks.

Shares of Samsung Electronics and SK Hynix jumped 7.12% and 9.61%, respectively.

In Japan, the Nikkei 225 climbed 5.05%, while the broader Topix index added 3.13%. Chinese equities also posted solid gains, with the CSI 300 rising 2.76%.

Hong Kong’s Hang Seng Index advanced 2.87% as trading resumed after a public holiday, while Australia’s S&P/ASX 200 increased 2.62%. India’s Nifty 50 also joined the rally, gaining 3.32%.

Market sentiment was further supported by expectations that declining energy prices could ease global inflationary pressures.

U.S. equity futures also pointed to a strong opening on Wall Street. Futures linked to the Dow Jones Industrial Average jumped by 718 points, or 1.5%, while S&P 500 futures rose 1.6% and Nasdaq 100 futures gained 1.7%.

In the previous U.S. session, major indexes ended mixed. The S&P 500 edged up 0.08% to close at 6,616.85, and the Nasdaq Composite rose 0.10% to 22,017.85. Meanwhile, the Dow Jones Industrial Average declined by 85.42 points, or 0.18%, settling at 46,584.46.

The temporary de-escalation in Middle East tensions has provided a strong boost to global markets, with investors closely monitoring whether the ceasefire conditions hold and lead to a more sustained easing of geopolitical risks.

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